OPERATOR SPECIFICATION MANUAL

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1 OPERATOR SPECIFICATION MANUAL SemCAMS Operator Specification Manual (November 2016) 1

2 Contents Introduction Document Conventions 5 Definitions 5 Application of Process 6 SemCAMS Need for Information 7 1. Process Milestones and Schedule 1.1. Instruction Project Stages Stage 1: Initial Contact Stage 2: Commercial and Business Development Negotiations Stage 3: Design and Installation Stage 4: Commissioning and Startup Stage 5: Normal Operations Facility and Pipeline Requirements 2.1. Introduction Stage 3: Design and Installation Gas Quality Liquid Quality Dewpoint Control Chemical Injection Requirements Cathodic Protection Automation for Remote Shutdown Capability Stage 4: Commissioning and Startup Stage 5: Normal Operations Measurement Requirements 3.1. Introduction Design and Installation General Requirements Gas Measurement Meter Specifications Volume Calculations Device Installation Fuel Gas Gas Sampling Liquid Measurement Meter Specifications Volume Calculations Liquid Sampling Commissioning and Startup Information Required Prior to Startup Site Acceptance Inspection Normal Operations Gas Meter Calibrations Meter Proving Sampling and Analysis Changes Impacting Measurement and Allocations EMF Information Updates Reporting and Allocation Requirements 4.1. Introduction Fixed Data Requirements 26 SemCAMS Operator Specification Manual (November 2016) 2

3 Working Interest Ownership Take-in-Kind (TIK) Directions from Product Owner Daily Confirmation and Allocation Process Daily Volumetric Reporting Data Requirements Schedule or Unscheduled Plant to Plant Reroute Process Monthly Allocation Process AER Volumetric Reporting 34 Appendix 1. K3 Gas Gathering System A. KBS-110 North West Wapiti Pipeline 36 B. KBS-116 North West Wapiti Loop Pipeline 38 C. KBS-120 Wapiti Pipeline 40 D. KBS-130 Simonette Pipeline 42 E. KBS-140 Kaybob West Pipeline 44 F. KBS-150 Fir Pipeline 46 G. KBS-160/161 Gregg Lakes Pipeline 48 H. KBS-170 Tower Creek Pipeline 50 I. KBS-180 Obed Pipeline 52 J. KBS-211 Treestone Pipeline 54 K. KBS-220 Winterburn Pipeline Pine Creek Gas Gathering System A. PCK-110 Oldman Pipeline 59 B. PCK-111 Nordegg 8 Pipeline 61 C. PCK-112 Nordegg 6 Pipeline 63 D. PCK-130 Pine Creek South High Pressure (Wet) Pipeline 65 E. PCK-134 Pine Creek South High Pressure (Dry) Pipeline 67 F. PCK-135 Pine Creek South Low Pressure Pipeline 69 G. PCK-140 Jackfish North Pipeline 71 H. PCK-141 Jackfish South Pipeline 73 I. PCK-142 Pine Creek North Pipeline 75 J. PCK-145 Fir Interconnect Pipeline 77 K. PCK-150 North West Pine Pipeline 79 L. PCK-180 Pine Creek 14 Sales Pipeline KA Amalgamated Gas Gathering System A. KAY-110 Tony Creek Pipeline 84 B. KAY-111 Tony Creek Extension Pipeline 86 C. KAY-140 KA North Pipeline 88 D. KAY-150 KA Condensate (HVP) Pipeline 90 E. KAY-160 Spotter Pipeline 92 F. KAY-210 Dunvegan Pipeline 94 G. KAY-211 Dunvegan Extension Pipeline 96 H. KAY-220 Bigstone NGL (HVP) Pipeline 98 I. KAY-230 C-Pool Pipeline 100 J. KAY-250 Southwest Gas Gathering System 102 K. KAY-260 East Viking Pipeline West Fox Creek Gas Gathering System A. KAY-270 West Fox Creek North Pipeline 107 B. KAY-271 West Fox Creek North (06-35 Lateral) Pipeline 109 SemCAMS Operator Specification Manual (November 2016) 3

4 C. KAY-272 West Fox Creek North (06-27 Lateral) Pipeline 111 D. KAY-273 West Fox Creek North East Pipeline 113 E. KAY-280 West Fox Creek South Pipeline 115 F. KAY-281 West Fox Creek South (06-35 Lateral) Pipeline 117 G. KAY-282 West Fox Creek South (08-03 Suction) Pipeline 119 H. KAY-283 West Fox Creek South (08-03 Discharge) Pipeline 121 I. KAY-284 West Fox Creek (10-22 Lateral) Pipeline 123 SemCAMS Operator Specification Manual (November 2016) 4

5 Introduction A Customer Tie-in Process for SemCAMS is required to ensure a common and consistent application of design, operation and measurement philosophy throughout various gas gathering and processing facilities owned by SemCAMS. This document identifies those policies, processes, procedures and standards for the design, operation, accurate measurement and reporting incumbent on Owners of facilities at the Acceptance Points and it may be implemented as a Letter of Agreement. Document Conventions This document and the process it describes are managed as part of the SemCAMS Measurement Integrity Process (MIP). The MIP has been undertaken by SemCAMS to outline policies, processes and standards to ensure measurement and allocation is handled consistently and equitably throughout the plants and gathering systems that SemCAMS owns and/or operates. Updates to this document will be created as the need arises and Customers can request updates directly from the contacts listed in section 2 of this document. Definitions Throughout this document, specific terms are used in SemCAMS business processes. These terms are bolded and italicized as they are used throughout this document. The definitions of these terms are provided as follows. CSO (Common Stream Operator) Company that is responsible for submitting daily estimates of gas production to the sales transportation pipeline companies on behalf of all the shippers at each sales meter station. Customer Any company or party that has ownership or interest in an Acceptance Point that feeds into a SemCAMS operated facility. (Electronic Flow Measurement) Any combination of devices used to calculate gas or liquid volumes in a microprocessor based computation device. may or may not include the ability for remote communication/configuration. Customer is directed to the appropriate pipeline specific requirements in Section 3 of this document. Gathered Volume Volume received into a SemCAMS gathering system for an acceptance point. Volume is to include gas equivalent of any condensate that is recombined with the gas and is still present in the product stream at the SemCAMS plant inlet. Volume is to be net of any self fuel or flare / vent taken downstream of the physical measurement (within the confines of the Customers facility or reporting battery / compressor station). For effluent metered locations volume provided to SemCAMS will have had effluent factor applied and volume prorated back from a sufficient group metering location (see Prorated Group Allocation Point). For non-scada entities volume may be estimated for the purpose of daily volumetric reporting 1 1 Refer to Section 4 of this document. SemCAMS Operator Specification Manual (November 2016) 5

6 Product Stream Analysis Component analysis data (to C7+) for product(s) measured at an acceptance point. Gas analysis to C7+ component Where condensate is recombined with gas require liquid hydrocarbon analysis to C7+ component, molar mass of the grouped fraction (C7+) and daily gas and liquid volumes corresponding to the date the product samples were taken. SemCAMS to perform recombination calculations for the Gathered Volume as required. Acceptance point A meter owned and operated by SemCAMS, or by a company with which SemCAMS does business and is used to measure product (by component) entering a SemCAMS pipeline or gas processing facility. An Acceptance Point meter includes those which: Determine the allocation of product to customers, Determine the volume of product entering a gathering system or gas plant. Acceptance points are broken down further into the following types: i. Measured Well Head Acceptance point is at a well head employing two or three phase separation. SemCAMS allocation is from plant inlet (or other SemCAMS operated intermediate entity) directly to well head Gathered Volume and Product Stream Analysis. ii. Custody Group Allocation Point (CGAP) Acceptance Point is at a group metering location employing two or three phase separation. SemCAMS allocation is from plant inlet (or other SemCAMS operated intermediate entity) directly to groups Gathered Volume and Product Stream Analysis. Customer is responsible for allocation to entities in front of this Acceptance Point. iii. Prorated Group Allocation Point (PGAP) Acceptance Point is at the physical wells in front of a group metering location based on pro-ration of the Gathered Volume measured at the group metering location. SemCAMS allocation is from plant inlet (or other SemCAMS operated intermediate entity) to each wells prorated share of the groups Gathered Volume and each wells Product Stream Analysis (volume at group point is considered the receipt volume but analysis data for the purpose of allocation is from the individual wells). Group metering location employs two or three phase separation. Product stream analysis for the group metering location is used only for the volume calculations performed at the group location not for allocation. Must be applied to all effluent measured wells. Will be applied to measured wells where customer provides a Gathered Volume from a known group metering location or shows fuel / flare / vent common to all upstream wells. Tie-In Point Physical connection to a pipeline system (either producer owned or owned by SemCAMS). Application of the Process This process is to be applied for all Customer entities that will be connected as Acceptance Points into a SemCAMS system. The Customer is responsible to ensure all expectations detailed in this document have been met. Any exceptions to the standards specified in this document must be SemCAMS Operator Specification Manual (November 2016) 6

7 approved by SemCAMS prior to installation. SemCAMS would expect that Customer s will follow the process for entities that are connected as a Tie-In Point upstream of existing Custody Group Allocation Acceptance Points but will not enforce the measurement requirements as listed in Chapter 4 of this document. All measurement requirements for entities in front of Custody Group Allocation Acceptance Points are to be determined by the operator of the Acceptance Point. SemCAMS Need for Information As the CSO of the West Whitecourt, Kaybob Amalgamated, West Fox Creek and Kaybob 3 gas plants and their associated gathering systems, SemCAMS is responsible for both daily and monthly allocation of sales gas and by-products to the producers (Customers). To carry out these tasks effectively, SemCAMS requires accurate production, ownership and marketing information in a timely fashion from the Customers. For this reason, this process applies not only to Acceptance Points but to entities attached upstream of the CGAP. By collecting information on these points, SemCAMS is able to be proactive in managing the allocation system. SemCAMS Operator Specification Manual (November 2016) 7

8 1 Process Milestones and Schedule 1.1 Introduction This section provides the generic sequence of events for the tie-in of an Acceptance Point to a SemCAMS facility. The Customer is referred to the specific chapters of this document for the key criteria pertaining to each stage. 1.2 Project Stages From the standpoint of the Customer, the process of connecting to a SemCAMS system or plant can be broken into the 5 basic stages as shown here: Stage Description 1 Initial Contact 2 Commercial and Business Development Negotiations 3 Design and Installation 4 Commissioning and Start Up 5 Normal Operations In each of these stages there is a need for open lines of communication between the Customer and the SemCAMS Field Business Development/Measurement Specialist (refer to Table 1.1: of this document). In some stages a level of signoff is required by SemCAMS prior to progression to the next stage. This is not intended to hinder the Customer but rather to ensure that a level of consistency be maintained throughout gathering systems that SemCAMS is responsible for allocating sales products within. Attention to these details prior to start up should minimize the need for future re-work of allocation and costly production outages to revise equipment to meet the required standards. The generic details of each stage are included in this section of the document. Specific requirements for each stage are provided in the other sections of this document Stage 1: Initial Contact This stage is considered the kick-off stage for the potential acceptance point tie-in. Preliminary information is gathered but the Customer may still be assessing the economics of production or considering alternate gathering and processing avenues. This section provides the Customer the details of information required by SemCAMS to commence initial planning to determine the potential for the Customer to connect to one of the SemCAMS facilities. It also provides the Customer with contact information for the key field business development personnel for each of the processing facilities that SemCAMS operates. SemCAMS Operator Specification Manual (November 2016) 8

9 Responsible Event Trigger Action (s) Customers Representative Customers Representative Well discovery or re-direct Confirmation of facility/well approval Complete SemCAMS Customer New Well/Facility Form and completed form to appropriate SemCAMS Field Business Development Measurement personnel listed in Table 1.1. Complete SemCAMS Customer New Well/Facility Form and completed form to appropriate SemCAMS Field Business Development Measurement personnel listed in Table 1.1. Table 1.1: Contact Information Title Name Contact Information Field Business Development / Measurement Supervisor Ben Johnston Office: (780) bjohnston@semgroupcorp.com Field Measurement Integrity Team John Hanson Office: (780) jhanson@semgroupcorp.com Field Measurement Integrity Team Josh Doran Office: (780) jdoran@semgroupcorp.com Field Measurement / Analysis Measurement Integrity Administrator Fax: (780) measurement@semgroupcorp.com Stage 2: Commercial and Business Development Negotiations Prerequisite All aspects of stage 1 must be completed prior to the kickoff of this stage. This section provides the Customer with key details pertaining to requirements that must be met with regard to agreements and contracts. The SemCAMS Field Business Development will provide the required contact names for other SemCAMS representatives as required. The following are the basic contract requirements for each standard 2 entity: For Measured Well Head Acceptance Points, each working interest owner must have a transportation agreement in place for all SemCAMS and third party pipelines the production will be flow lined through. For Measured Well Head Acceptance Points, each working interest owner must have a processing agreement in place for the SemCAMS facility that will process the gathered products. 2 A standard entity would include a well or acceptance point with only one delivery pipeline connected to it. If there is a potential that production can split and/or re-route to alternate facilities for gathering or fuel supply than SemCAMS needs to be advised of this during this stage. SemCAMS Operator Specification Manual (November 2016) 9

10 For Custody Group Allocation and Prorated Group Allocation Acceptance Points each working interest owner for each well upstream of the Acceptance Point must have a transportation agreement in place for all SemCAMS and third party pipelines the production will be flowing through. For Custody Group Allocation and Prorated Group Allocation Acceptance Points, each working interest owner for each well upstream of the Acceptance Point must have a processing agreement in place for the SemCAMS facility that will process the gathered products. Appropriate road use agreements are in place. Other areas to be considered during this stage and prior to construction include: If pipeline being connected to can re-route production to an alternate system / plant then all of the contracts listed above must also be in place for the alternate system/plant. Source of fuel for proposed entity and agreements in place to cover? Marketing agreements in place for each working interest owner for the saleable products (outlet of gas plant)? Water handling and disposal agreements in place? Cathodic protection requirements (refer to Section of this document) Stage 3: Design and Installation This stage involves the design and physical construction of the Acceptance Point facility. The majority of Stage 2 should be complete prior to this stage. This section provides the Customer with the expectations that must be met for the appropriate design and installation of the Acceptance Point. A SemCAMS representative must be included in a design review meeting prior to construction. SemCAMS encourages the Customer to work proactively with the relevant SemCAMS Field Business Development during this stage Stage 4: Commissioning and Startup During or immediately following this stage, SemCAMS reserves the right to conduct an inspection of the Customer s Acceptance Point facility. Any major deficiencies identified during the inspection must be corrected by the Customer within the specified time frame. Failure to do so will result in shut in of the acceptance point. The following must be in place 5 days prior to start up: New Well Tie-In Form submitted to SemCAMS Field Business Development Supervisor. All Transportation and Processing agreements must be in place. Take in Kind Notices (TIK) in place for all product owners with the CSO. SemCAMS Notice of Agent Agreement form in place. Transportation Service Provider (TSP) nominations must be in place for all product owners. Process in place for daily production reporting to CSO. SemCAMS Field Business Development Supervisor approval to start up. SemCAMS Operator Specification Manual (November 2016) 10

11 Note: SemCAMS will not grant approval for a facility startup within the last 3 days of a calendar month Stage 5: Normal Operations This stage begins immediately following startup of the Acceptance Point. During this phase, SemCAMS reserves the right to conduct site inspections to ensure compliance with this process upon appropriate notification. SemCAMS Operator Specification Manual (November 2016) 11

12 2 Facility and Pipeline Requirements 2.1 Introduction This section details the pipeline related requirements that the Customer is to meet when directly tying into a SemCAMS pipeline for the stages of the process that are applicable. 2.2 Stage 3 - Design and Installation The Customer is asked to ensure their facilities comply with the following SemCAMS requirements as failure to meet these requirements may result in a delay for permission to start up: Refer to the SemCAMS Pipeline Tie-in specifications for specific engineering design and operating specifications pertaining to pipeline(s) delivering product for processing at the; 1. K3 Gas Plant (Appendix 1 & 2) 2. KA Amalgamated Gas Plant (Appendix 3) 3. West Fox Creek Plant (Appendix 4) 4. West Whitecourt Plant (Field Business Development Supervisor will provide upon request) The metering facility design must meet the specifications outlined in the Section 3 of this document. The Customer s design review will include a SemCAMS representative. The design review will include (but not be limited to): Ownership break / lease management responsibility Block valve, check valve, spec blind, local pressure indicator Future blinded tee connection Cathodic protection and isolation Emergency shutdown devices and set points Piping codes and standard engineering practices Piping configuration / layout / plot plan Chemical injection and corrosion monitoring equipment Automation and measurement requirements Shutdown key (refer to Schedules in the SemCAMS Pipeline Tie-in specifications) The Customer will contact SemCAMS Gas Control ( ) prior to entering any SemCAMS facility, The Customer is required to contact SemCAMS and obtain permission at least 72 hours prior to requested start-up. The Customer will supply required Emergency Response Plan information to SemCAMS for updating of the SemCAMS ERP. SemCAMS Operator Specification Manual (November 2016) 12

13 2.2.1 Gas Quality The gas entering a receipt point must meet the following criteria: free of oxygen, CO 2 content must be less than 2%. If the CO 2 content exceeds 2%, the Customer will be responsible for any penalties incurred Liquid Quality Injection of free hydrocarbon liquids must be approved by SemCAMS. Hydrocarbon liquids must be free of the following: Oxygen, water, paraffin, solids and work-over fluids Injection of free water must be approved by SemCAMS Customer facilities that require BS&W control incorporated in their design the following: BS&W probe if condensate is approved to be injected into SemCAMS pipeline. Condensate BS&W maximum limit to be determined jointly by the Customer and SemCAMS engineering/operations prior to start up. Automatic shutdown set points for BS&W. All Customers gas/condensate shall be free from substances in such quantities that may obstruct, damage or be detrimental to the operation of the pipeline. Note: If injection of free hydrocarbon liquids or free water is to be considered an analysis must be forwarded to SemCAMS and approved prior to injection. The sample must be analyzed and be within specification for phosphorus (<1.5ppm) and olefin (<1%WT) readings Dew Point Control Customer facilities that require dew point control (refer to Schedules in the SemCAMS Pipeline Tie-in specifications) must incorporate in their design the following: Gas dew point analyzer required at all dehydration facilities Dew point limit of 10º Celsius Automatic shutdown set points for dew point Chemical Injection Requirements SemCAMS pipeline systems have pipeline specific requirements pertaining to chemical injection (refer to Schedules in the SemCAMS Pipeline Tie-in specifications). Customer injected chemicals must be compatible with SemCAMS existing chemical programs and meet specific minimum rate injections. SemCAMS Pipeline Asset Integrity Team must review and approve chemicals and injection rates. The following conditions apply: No sulphur dispersants chemical will be accepted into SemCAMS Pipelines. The Customer will ensure equipment is in place to eliminate the possibility of sulphur dispersant entering the SemCAMS pipeline. SemCAMS Operator Specification Manual (November 2016) 13

14 No Methanol to be introduced into high pressure sour pipelines systems without prior approval from SemCAMS Pipeline Supervisor. Batch Treatment of Customer pipelines during normal operation SemCAMS must be notified in advance, this should include batch chemical type, size and schedule. Under no circumstances will Nitrogen be allowed into the SemCAMS operating pipeline Cathodic Protection SemCAMS maintains cathodic protection to protect pipelines owned and operated by SemCAMS. SemCAMS presently performs monthly rectifier checks together with an annual survey to ensure adequate protection is being supplied and maintained throughout the system. SemCAMS could provide coverage to the Customer s pipeline subject to receipt and agreement by the Customer of the following conditions: SemCAMS preferred vendor will perform an initial evaluation of the Customer owned pipeline to determine protection requirements. Cathodic protection requirements include protecting the pipeline only and do not include any well bore protection that may be required. On determining pipeline protection requirements, SemCAMS is prepared to provide the following: If initial protection requirements determine that SemCAMS existing rectifier can provide adequate protection levels without modifications or upgrades, SemCAMS will provide protection to the Customer s pipeline, providing an insulation kit is installed downstream of the wellhead and wellhead facilities to isolate them from the pipeline. There will be no guarantee or liability on SemCAMS part. If during the life of the project any cathodic upgrades were required in order to continue protecting the Customer s pipeline, the Customer would be responsible for their share of upgrade costs. SemCAMS does not indemnify Customer in any way for the installation of any requested Cathodic Protection, specifically in respect of any damage which may occur as a result of the installation. If initial protection requirements determined that SemCAMS existing rectifier cannot provide adequate protection levels without equipment upgrades or modifications, SemCAMS would still be willing to provide protection, with the Customer being responsible for upgrade costs. As stated above, there will be no guarantee or liability on SemCAMS behalf. If during the life of the project any cathodic upgrades were required in order to continue protecting the Customer s pipeline, the Customer would be responsible for their share of upgrade costs. In accepting any of the above protection conditions, the Customer accepts that the SemCAMS preferred vendor would directly bill the Customer for cathodic protection services provided on the Customer s pipeline. In either case an insulation kit(s) will be installed at location. Should cathodic protection be supplied the insulating kit will be jumper - bonded. SemCAMS Operator Specification Manual (November 2016) 14

15 2.2.6 Automation for Remote Shut Down Capability Where automation is to be installed to enable SemCAMS remote shut down capability of an Acceptance Point, SemCAMS will advise the Customer what equipment will need to be installed to ensure compatibility with existing SemCAMS infrastructure. This will depend on which pipeline system the Acceptance Point is being connected to (refer to the SemCAMS Pipeline Tie-in specifications found in the Appendix). 2.3 Stage 4 Commissioning and Startup SemCAMS Pipeline Supervisor will review the Customers commissioning and startup procedures prior online production. All initial liquid volumes (fractionation fluids, hydro test liquids, batch chemicals etc.) will not be accepted into the SemCAMS pipeline without approval of the SemCAMS Pipeline Supervisor. All new pipelines will be hydro-tested, cleaned, purged and leak checked. All ESD controls and automation equipment will be function tested prior to startup. The Customer will supply P&ID s, metering schematics, quality control and other documentation as applicable. During or immediately following this stage, SemCAMS reserves the right to conduct an inspection of the Customer s Acceptance Point facility. Any major deficiencies identified during the inspection must be corrected by the Customer within the specified time frame. Failure to do so will result in shut in of the Acceptance Point Automation for Remote Shut Down Capability Where automation has been installed to enable SemCAMS remote shut down capability of an Acceptance Point, a SemCAMS representative will be present during commissioning to ensure functionality of the system. SemCAMS commissioning arrangements will be made by the SemCAMS Pipeline Supervisor. 2.4 Stage 5 Normal Operations Customer will be responsible for the following during normal operations of the Tie-In Point, Maintenance of the site in an environmentally conscience way. Maintenance and operation of their ESD valve and associated equipment. Installation and monitoring of their corrosion equipment. Customer and SemCAMS to share corrosion monitoring, cathodic protection and other pertinent data to ensure appropriate management of the Tie-In Point and shared facilities. Maintain communication with SemCAMS gas control ( ) with regards to production information, process upsets and emergency conditions. SemCAMS Operator Specification Manual (November 2016) 15

16 3 Measurement Requirements 3.1 Introduction This section details the Customer measurement requirements for all Acceptance Points entering a system or plant operated by SemCAMS. The standards specified by SemCAMS shall be met for all new facilities. These standards defined meet or exceed regulatory and industry standards. For the purposes of this document the Alberta Energy Regulators (AER) Directive 17, Measurement Requirements for Upstream Oil and Gas Operations will be referred to as AER D Design and Installation General Requirements The policy requirements to be adhered to are as follows: All measurement installations and procedures will meet or exceed AER D-17 specifications. The measurement system should have the capability of providing automated daily volumes to SemCAMS, either via a secure website or via connection to the SemCAMS SCADA system. Volumes and energy will be reported in SI units to 1 decimal place, Gas volumes will be calculated at base conditions of kpa and 15 C. Liquid volumes will be calculated at base conditions of zero kpag or the equilibrium vapour pressure (whichever is higher) and 15 C. The atmospheric pressure used in the volume calculation shall be based on actual elevation and must be determined by using certified government topographical maps or GPS. The atmospheric pressure is based on the following: Elevation in meters: ( x elevation) kpa All fuel and continuous flare volumes that are greater than 500 m 3 per day will be metered. Where estimates are used for determining fuel or flare volumes, the methodology including all calculations must be provided to SemCAMS prior to startup and when any changes are made. Customer will annually provide SemCAMS with a current measurement schematic that meets the requirements set out in AER D-17 Section 1.9. Schematic basics include: Measurement points with identification numbers used for accounting (gas meters, liquid meters, storage tanks, separators, compressors, major process equipment). Physical sight configuration and flow directions, identification and location of liquids that are recombined with the gas. Fuel, flare or vent take-off points with indication of estimated or metered volumes. SemCAMS Operator Specification Manual (November 2016) 16

17 3.2.2 Gas Measurement Gas measurement at Acceptance Points into a gas gathering system or plant operated by SemCAMS is to be designed and installed according to the following standards. All measurement points shall be continuously and accurately measured or estimated where permitted in AER D-17. Monthly gas and liquid volumes shall be reported to one decimal place. All volumes shall be reported at standard conditions as outlined in AER D-17 Section 4 and Section 3.2 of this document Meter Specifications In addition to the requirements set out in AER D-17 the following details highlight specifications for gas and liquid measurement equipment being tied into SemCAMS: All gas Acceptance Points will require (Electronic Flow Measurement). Chart recorders are not acceptable. All gas and liquid Acceptance Points must meet the accuracy requirements set out in the AER D-17 Section for Gas Systems. This is typically 3.0% for well gas and 2.0% for well condensate. When orifice meter runs are used they should be installed in the vertical position to reduce errors caused by liquid buildup upstream of the orifice plate. See Figure 3.1 of this document. Meters must be installed as per manufacturer s recommendation to meet accuracy requirements. Meter must have sufficient unobstructed straight upstream and downstream pipe diameters. Orifice plate beta ratio, (Orifice plate inside diameter divided by outside diameter) should be maintained within a range of 0.2 to 0.6. All installations shall be designed so that each sensor will operate at a point greater than 10% of the calibrated span under normal operating conditions Volume Calculations The following details the expectations for gas volume calculations: Shall meet the requirements set out in AER D-17 Section Volumetric Calculations Calculation performance evaluations must be conducted as outlined in AER D-17 Section Performance Evaluation, results must be sent to SemCAMS. Generally flow calculations are required to fall within +/- 0.25% of a known test case or standalone flow calculation program Device Installation Transmitter installation requirements are identified as follows and in Figure 3.1: All sensing lines should be dedicated and short coupled, recommended one meter (1 m) or less. All sensing lines will be sloped toward the primary device, the recommended minimum slope is 3 cm per 30 cm of length (1:10 slope). SemCAMS Operator Specification Manual (November 2016) 17

18 The manifold will be a five (5) valve manifold. The sensing lines should have a minimum nominal diameter of ½ inch. The main line isolation valves to the manifold will be fully ported with a nominal diameter consistent with the sensing lines. Temperature transmitters/rtd probes should be installed with flexible armored cable enabling the RTD to be easily removed from the thermowell for calibration procedures. Figure 3.1 Gas Meter Installation mount transmitters higher than orifice fitting and on stand-alone support structure DP 100 P 100 Meter Run five valve manifold Capped isolation valves installed on unused source connections for potential future use. Blowdown 1/2" stainless steel tubing tubing length = <1 meter slope down from transmitters to fitting 3 cm per 30 cm length 1/2" full port ball valves (typ.) T 100 Capillary Line Signal Line Electronic Signal Fuel Gas For all upstream properties tying into SemCAMS with an annual average fuel gas usage of greater than 0.5 E3M3/day; a meter capable of continuous measurement must be installed. For volumes less than 0.5 E3M3/day an engineering estimate may be used. All reported fuel gas volumes must be corrected to standard conditions as outlined Section of this document. SemCAMS Operator Specification Manual (November 2016) 18

19 Gas Sampling The following details the expectations for gas sample points: Sample probes shall be installed at each Acceptance Point. The sample point must be located where a sample representative of the gas flowing through the acceptance point meter can be obtained. The sample probe shall be installed into the center third of the pipe. The sample probe should be installed vertically at the top of a straight run of horizontal pipe. Where the gas is at or near its hydrocarbon dew point, the sample point should be located upstream of the orifice meter run and at least 5 pipe diameters downstream of any flow disturbing elements (such as elbows, tees, valves etc.). Where the gas is not near its hydrocarbon dew point the sample point can be either upstream or downstream of the meter run and avoidance of flow disturbing devices is less critical. The sample point should be indoors and not make use of excessive tubing to make sample point accessible Liquid Measurement SemCAMS requires measurement of all liquids recombined with the gas stream at an Acceptance Point and delivered to a SemCAMS plant Meter Specifications The following details the specifications for liquid measurement equipment: Liquid meters will be installed and operated in accordance with AER D-17 requirements and manufacturers specifications. A strainer will be located upstream of meters that are sensitive to solids/stream particulates. Where condensate volumes exceed 2 m 3 /day, proving taps will be installed to allow for inline proving Volume Calculations The following details the requirements for liquid volume calculations: All liquid volumes will be corrected to 15 C using one of the 3 methods listed below and the applicable temperature compensation method listed in Table, Temperature is measured continuously and CTL (Correction for the effect of Temperature on Liquid) calculated by or; Determine a temperature compensated meter factor / k-factor at time of proving by temperature compensating the proving volume or; Take temperature reading at time of manual meter reading and apply CTL. Most hydrocarbon liquids in the gathering system are at or near the equilibrium vapour pressure. Therefore, CPL (Correction for the effect of Pressure on Liquid) SemCAMS Operator Specification Manual (November 2016) 19

20 is not required. Each installation shall be reviewed to determine if CPL is required. Table 3.1: Standards for Calculating CTL and CPL Standard Product and Density Range CTL (Correction for the effect of Temperature on Liquid) IP Table 54 Light Hydrocarbon Liquids ( kg/m 3 ) API MPMS 11.1 Crude Oil, Refined Products and Lubricating Oils ( kg/m 3 ) CPL (Correction for the effect of Pressure on Liquid) API MPMS M Light Hydrocarbon Liquids ( kg/m 3 ) API MPMS 11.1 Crude Oil, Refined Products and Lubricating Oils ( kg/m 3 ) Liquid Sampling The following details the expectations for liquid sampling: Sample probes shall be installed at each Acceptance Point. The sample point must be located where a sample representative of the liquid flowing through the acceptance point meter can be obtained. The sample probe shall be installed into the center third of the pipe. The sample probe should be installed horizontally, on the side of a straight run of horizontal pipe. Sample points must not be located where vapor breakout is likely, such as downstream of pressure reducing components (such as orifice plates, flow conditioners, turbine, PD or Coriolis mass meters, control valves etc.) or where the stream temperature has increased. For separator applications, the sample point must be located between the separator outlet and the level control valve, upstream of the meter. 3.3 Commissioning and Startup This section provides the Customer with the details of what information is required and what actions must be complete prior to SemCAMS allowing activation of an Acceptance Point Information Required Prior to Startup The following information must be submitted electronically to the SemCAMS Field Business Development Supervisor (refer to Section 2 of this document) prior to activation of the Acceptance Point: SemCAMS Operator Specification Manual (November 2016) 20

21 Gas and condensate (if condensate recombined with gas) analysis 3. Calibration/inspection forms for the primary meter, secondary and tertiary devices including the orifice plate where applicable. Process flow diagram (or measurement schematic) of each Acceptance Point. performance evaluation documentation as per AER D-17. The following method is preferred for performance evaluation: Evaluate the calculation accuracy with a flow checking program. A snapshot of the instantaneous flow parameters and factors, flow rates and configuration information is to be taken from the and input into the checking program. The volumetric flow rate obtained in the snapshot must agree to +0.25% of the flow rate recorded by the flow checking program. Details of estimations used for fuel gas consumption Site Acceptance Inspection SemCAMS personnel will perform an initial inspection of each Customer s Acceptance Point prior to commissioning the measurement point. The Customer will be provided a copy of the completed inspection report. Facilities, which do not meet the SemCAMS Acceptance Point specifications, will not be allowed entry into the SemCAMS system until the deficiencies are corrected and the Acceptance Point has been re-inspected. 3.4 Normal Operations This section provides the Customer with the details of ongoing responsibilities pertaining to measurement at an Acceptance Point. SemCAMS reserves the right to inspect the Acceptance Point measurement equipment at any reasonable time and with prior notice to the Customer. This is done to ensure general compliance with SemCAMS measurement requirements and to ensure the data being used in our allocation system is current. Where a Customer s facility is not in compliance with SemCAMS expectations or current regulatory requirements and the non-compliance may result in the miss-allocation of products, SemCAMS will take appropriate actions. IMPORTANT: Electronic Copies of completed calibration reports, proving reports, Performance Evaluation, and analysis data for all Acceptance Points and Tie-In Points are to be sent to: SemCAMS Attention: Measurement Integrity Administrator P.O. Box 6328, Edson, Alberta, T7E 1T8 Fax: measurement@semgroupcorp.com Gas Meter Calibration SemCAMS expectations pertaining to gas meter calibration are as follows: 3 For effluent measured wells a typical analysis can be provided until a well test is completed and individual gas and condensate samples can be taken. SemCAMS Operator Specification Manual (November 2016) 21

22 For group points, provide SemCAMS a schedule for calibration to allow SemCAMS the opportunity to witness calibrations. Calibration will include validation of signals from transmitters to the flow computation device. Calibration will include validation of all fixed meter data configured in the device performing the volumetric calculations. Calibration of Acceptance Point meters is to be performed prior to startup and then at the frequencies listed in Table : Table 3.2: Calibration Frequency Requirements Acceptance Point Type Well Head Group Acceptance Point (Prorated or Custody) Frequency Every 12 months Every 6 months Meter Proving SemCAMS expectations pertaining to liquid meter proving are as follows: For group points, provide SemCAMS a schedule for meter proving to allow SemCAMS the opportunity to witness. Meter proving to be done in situ unless average daily volume is less than or equal to 2 m 3 /day. Proving of Acceptance Point meters is to be performed within 30 days after commissioning and then at the frequencies listed in Table : Table 3.3: Meter Proving Frequency Requirements Service Condensate Water Frequency Every 12 months Every 12 months Sampling and Analysis SemCAMS requires accurate analysis data for all production streams to ensure product allocation is accurate and equitable. SemCAMS expectations of the Customer for ongoing sampling and analysis are as follows: SemCAMS must receive the required analyses 5 working days before the end of the month the analysis should be effective to allow for internal validation and system transfers. SemCAMS has implemented a comprehensive Field Data Capture system (FDC). This system is setup to receive analysis data electronically. SemCAMS SemCAMS Operator Specification Manual (November 2016) 22

23 requires Upstream Operators and/or Upstream Licensees to provide their well and group point analysis data electronically. An automated data export in a PGAS compatible formatted file has been developed by several data providers. This transfer of data through a SemCAMS secure ftp server was implemented to improve data flow and data integrity. It is the customer s responsibility to arrange with their data service provider(s) if approval is required prior to the transfer of analyses to SemCAMS. Authorization is required for currently producing wells and group points tied into SemCAMS facilities along with any future well or group point tie-ins where SemCAMS requires compositional analysis for product allocation. Refer to the Authorization for Release of Analyses Data Form. The gas sampling equipment and procedures must follow the requirements in API MPMS 14.1 (February 2006) and GPA The hydrocarbon liquid sampling equipment and procedures must follow the requirements in GPA or the evacuated cylinder method referenced in GPA For gas analysis, if H 2S (hydrogen sulfide) is present, an on-site Tutwiler or stain tube test, depending on concentration, shall be conducted to obtain the H 2S content, Where condensate is recombined with the gas, both gas and liquid samples must be taken on the same day and during normal flowing conditions. Where condensate is recombined with the gas, separate gas and condensate volumes must be provided with the analysis for the purpose of calculating the recombined analysis. Total monthly gas (10 3 m 3 ) and liquid (m 3 ) volumes for the month in which the samples were taken are required. For effluent metered wells, gas and liquid samples are to be collected during the effluent test. Copies of the lab analysis reports and the completed effluent test results are to be provided to SemCAMS. Samples are to be analyzed by a recognized third party laboratory. Gas and liquid must be analyzed to C7+. SemCAMS will review all supplied analysis to ensure that the following acceptance criteria is met. If the analysis data does not meet the acceptance criteria then the analysis will be rejected and the Customer will be asked to provide new analysis data. Acceptance Criteria: Analysis received within 365 days of the sample date on the analysis report. For gas analysis, as received pressure of sample must be within 20% of the as sampled pressure. Must be less than 30 days between date sampled and date reported. For acceptance points that deliver both gas and condensate, gas and condensate analysis along with daily volumes as per AER D-17 Section item 7 must be received. Analysis report includes the full and correct UWI of the well sampled, Reports must be legible. Must not be rejected by the lab performing the analysis. Customer s responsibility is to ensure SemCAMS receives analyses for all producing wells. Samples are to be taken at the frequencies provided in Table 3.4: SemCAMS Operator Specification Manual (November 2016) 23

24 Table 3.4: Gas and Condensate Sampling Frequency Requirements Acceptance Point Type Initial Production Period Ongoing Production Period Well Within first calendar month of production. As per Regulatory Requirements SemCAMS must receive analysis 5 working days prior to month end Second sample required after 6 months of production Note: These initial requirements will also apply to any wells that are recompleted to a different zone, where multiple zones are commingled downhole, or where any other changes occur that would have a significant impact on the well composition. Custody Group Allocation Point As per Regulatory requirements Every 30 Days (CGAP) Prorated Group Allocation Point As per Regulatory requirements Every 30 Days (PGAP) Flow Splitter Same as Custody Group Allocation Point Same as Custody Group Allocation Point When uncertainty or requirements cannot be met, Customer must consider more frequent sampling, proportional samplers, or chromatographs. The gas and liquid analysis must be updated when operating conditions are significantly altered (e.g. addition/removal of compression or line-heating, addition/removal of production sources in a common stream, wellbore recompletion Changes Impacting Measurement and Allocation Within the course of operations of the Acceptance Point, modifications will be required to the equipment or the data being used to calculate volumes. In most cases it is up to the Customer to ensure adequate records are retained to satisfy regulatory requirements with regard to these changes. SemCAMS needs to be made aware of changes that impact product allocation immediately following the change and in some cases prior to the change being made. The key areas requiring notification to SemCAMS include: Modification to condensate handling at site. At Acceptance Points where condensate can be either recombined with the gas or diverted to tank by the operation of a valve, SemCAMS must be advised in advance when this valve will be operated 4. The Customer is asked to contact the appropriate Field Business Development Supervisor (as listed in section 2 of this document) when a change is made. Modification to water handling at site. At Acceptance Points where water can be either recombined with the gas or diverted to tank by the operation of a valve, SemCAMS must be advised in advance when this valve will be operated. The Customer is asked to contact the appropriate Field Business Development Supervisor when a change is made Information Updates Although no notification is required to SemCAMS, the following data must be updated in the as required and audit logs retained as per AER D Prior written approval must be in place from time of initial tie-in allowing recombination of liquids. SemCAMS Operator Specification Manual (November 2016) 24

25 Table 3.5: Update Timing Orifice plate size Transmitter range Meter/K Factor Gas Composition Data Liquid Density (where is performing CTL and CPL calculations) Update Immediately following change Immediately following change Immediately following prove As soon as possible following receipt of analysis As soon as possible following receipt of analysis SemCAMS Operator Specification Manual (November 2016) 25

26 4 Reporting and Allocation Requirements 4.1 Introduction any different parties can be involved in the movement of natural gas across a particular location. The Common Stream Operator (CSO) of the affected location, using the predetermined allocation methodology agreed to by the parties involved, performs allocations. As the CSO of the West Whitecourt, Kaybob Amalgamated, West Fox Creek and Kaybob 3 gas plants and many of the associated gathering systems, SemCAMS is responsible for both daily and monthly allocation of sales gas and by-products to Customers. Daily confirmations and allocations are provided by the CSO on an estimated basis throughout the current month. Final month end allocations are provided by the CSO on an accounting basis after the close of the current production month. It is SemCAMS responsibility to equitably allocate sales products back to the Customer based on the Customer or operator provided Gathered Volumes and Product Stream Analysis. To carry out these tasks effectively, SemCAMS requires accurate and timely production, ownership and Take-In-Kind (TIK) information from the Customers. For this reason, this process applies not only to Acceptance Points but to entities attached upstream of Custody Group Allocation Points. The Customer is responsible for ensuring all expectations detailed in this document have been met prior to start up and flow of production and the commencement of the allocation process. To ensure the accuracy of daily and monthly allocations, it is imperative that every Customer have the following in place: Required tie in and measurement conditions as outlined in Section 2. In addition to meeting the operational tie in and measurement needs, the required New Well Form is the base document that activates SemCAMS internal daily and monthly allocation set up. The submission of this document to the SemCAMS Field Business Development Supervisor prior to start up is critical to the success of the daily and monthly allocation process. Required gathering and processing agreement conditions as outlined in Chapter It is essential that every Customer have all required gathering and processing agreements in place prior to start up and the commencement of the daily confirmation and allocation process. In the event a Customer has production that is not covered under an appropriate agreement and the required tie in and measurement conditions SemCAMS has the right to bill the Customer directly for any re-work costs associated with the re-allocation of plant sales products. 4.2 Fixed Data Requirements Working Interest Ownership Timely working interest ownership notification is required for the allocation process. Ownership change is defined as but not limited to physical Unique Well Identifier (UWI) ownership and corporate (merger, acquisition, amalgamation, corporate structure change) ownership. There are 2 basic types of working interest ownership data that affect the allocations process: Legal property ownership as it relates to the actual working interest in a UWI, units, pools or facilities. SemCAMS Operator Specification Manual (November 2016) 26

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