AOGCC initial meter approval required

The Alaska Oil and Gas Conservation Commission said Nov. 13 that it has uncovered a gap in its regulations for custody transfer metering equipment. These meters are used to measure hydrocarbon volumes for revenue and tax determinations, the commission said, and there is nothing to specify that — and how — an operator must receive initial approval for custody transfer metering equipment.

Initial approval is necessary, the commission said, to prevent an improperly designed, installed or calibrated custody transfer metering system from going into service. Before new equipment is installed, or equipment is altered, the commission requires proof that the equipment complies with relevant parts of the American Petroleum Institute “Manual of Petroleum Measurement Standards.” Information required would include sample calculations generated using proposed methodology.

The regulation also specifies that an approved methodology may not be changed without the commission’s approval.

The commission has posted the proposed regulation for comment on its Web site: www.aogcc.alaska.gov.

A hearing is scheduled Jan. 13 at 9 a.m. at the commission’s offices in Anchorage.

—Petroleum News