2 Colo. Code Regs. § 404-1-430
Current through Register Vol. 47, No. 20, October 25, 2024
Section 2 CCR 404-1-430 - MEASUREMENT OF GASa.General Standards.(1)Measurement and Reporting. The volume of all gas produced from a lease or a production unit will be measured and recorded prior to removal from the lease or production unit. Production of gas of all kinds will be measured by meter unless otherwise agreed to by the Director. For computing volume of gas to be reported to the Commission, the standard pressure base will be 14.73 psia, regardless of atmospheric pressure at the point of measurement, and the standard temperature base will be 60° F. All volumes of gas to be reported to the Commission will be adjusted by computation to these standards, regardless of pressures and temperatures at which the gas was actually measured, unless otherwise authorized by the Director.(2)Incorporation by Reference. This Rule 430 will be used consistently with standards established by the ASTM, API, AGA, GPA, or other applicable standards-setting organizations, as incorporated by reference pursuant to Rule 429.a.(2), and pursuant to contractual rights and obligations.b.Metering Station. Installation and operation of gas measurement stations will be pursuant to industry standards, as incorporated by reference pursuant to Rule 429.a.(2): (1) API, Manual of Petroleum Measurement Standards, Chapter 14.3: Orifice Metering of Natural Gas and Other Related Hydrocarbon Fluids-Concentric, Square-Edged Orifice Meters: A. Part 2: Specification and Installation Requirements (Fifth Edition, March 2016 including March 2017 and January 2019 errata);B. Part 3: Natural Gas Applications (Fourth Edition, November 2013); andC. Part 4: Background, Development, Implementation Procedure, and Example Calculations (Fourth Edition, October 2019);(2) API, Manual of Petroleum Measurement Standards, Chapter 21.1: Flow Measurement Using Electronic Metering Systems-Electronic Gas Measurement (Second Edition, February 2013);(3) AGA, Report #7: Measurement of Natural Gas by Turbine Meters (January 2006);(4) AGA, Report #9: Measurement of Gas by Multipath Ultrasonic Meters (July 2017); and(5) AGA, Report #11: Measurement of Natural Gas by Coriolis Meter (February 2013).c.Metering Equipment. The devices used to measure the differential, line pressure, and temperature will have accepted accuracy ratings established in industry standards as specified in API, Manual of Petroleum Measurement Standards, Chapter 22: Testing Protocols, as incorporated by reference pursuant to Rule 429.a.(2): (1) Chapter 22.1: General Guidelines for Developing Testing Protocols for Devices Used in the Measurement of Hydrocarbon Fluids, (Second Edition, August 2015, including November 2018 Addendum 1); and(2) Chapter 22.2: Testing Protocols-Differential Pressure Flow Measurement Devices (Second Edition, April 2017).d.Meter Calibration.(1) Meters will be calibrated annually unless more frequent calibration is required by contractual obligations or by the Director. All calibration reports will be created, maintained, and made available as operation records pursuant to Rule 206. In the event two consecutive meter calibrations exceed a 2% error, the Operator will report the test results to the Director who may require the Operator to show cause why the meter should not be replaced.(2) The Operator will conspicuously post and maintain the date of the last meter calibration in a legible condition at each meter at all times.e.Gas Quality. The heating value of produced natural gas will be representative of the flowing gas stream at the lease or unit boundary, as determined by chromatographic analysis of a sample obtained in close proximity to the volume measurement device and will be reported on a Form 7. Gas sampling and analysis will occur annually unless more frequent sampling is required by contractual obligations or by the Director. Gas sampling, gas chromatography, and the resulting analysis data will be pursuant to industry standards, as incorporated by reference pursuant to Rule 429.a.(2): (1) API, Manual of Petroleum Measurement Standards, Chapter 14.1: Collecting and Handling of Natural Gas Samples for Custody Transfer (Seventh Edition, May 2016, including August 2017 Addendum 1 and Errata 1);(2) GPA, Standard 2166, Obtaining Natural Gas Samples for Analysis by Gas Chromatography (Fifth Edition, January 2017);(3) GPA, Standard 2261, Analysis for Natural Gas and Similar Gaseous Mixtures by Gas Chromatography (2019 Edition, January 2019);(4) GPA, Standard 2286, Method for the Extended Analysis for Natural Gas and Similar Gaseous Mixtures by Temperature Program Gas Chromatography (September 2014);(5) GPA, Standard 2145, Table of the Physical Properties for Hydrocarbons and Other Compounds of Interest to Natural Gas and Natural Gas Liquids Industries (January 2016); and(6) GPA, Standard 2172, Calculation of Gross Heating Value, Relative Density, Compressibility and Theoretical Hydrocarbon Liquid Content for Natural Gas Mixtures for Custody Transfer (February 2020).f.Sales Reconciliation. In order to facilitate the resolution of questions regarding the payment of proceeds or sales reconciliation from a Well, a payee may submit a Form 37 to the payer requesting additional information concerning the payee's interest in the Well, price of the gas sold, taxes applied to the sale of gas, differences in Well production and Well sales, and other information as described in § 34-60-118.5, C.R.S. The payer will return the completed form to the payee within 60 days of receipt. Submittal of this form to the payer will fulfill the requirement for "written request" described in § 34-60-118.5 (2.5), C.R.S., and is a prerequisite to filing a complaint with the Commission. The payer will use its best efforts to consult in good faith with the payee to resolve disputes regarding payment of proceeds or sales reconciliation.g. A Form 37 requesting information concerning payment of proceeds or requesting information concerning sales volume reconciliation may be submitted by the payee at any time. The Commission may act to prohibit or terminate any abuse of the reconciliation process.37 CR 16, August 25, 2014, effective 9/30/201438 CR 01, January 10, 2015, effective 2/14/201538 CR 03, February 10, 2015, effective 3/2/201538 CR 07, April 10, 2015, effective 4/30/201538 CR 16, August 25, 2015, effective 9/14/201539 CR 04, February 25, 2016, effective 3/16/201641 CR 05, March 10, 2018, effective 4/1/201841 CR 06, March 25, 2018, effective 5/1/201841 CR 23, December 10, 2018, effective 12/30/201842 CR 02, January 25, 2019, effective 2/14/201942 CR 17, September 10, 2019, effective 9/30/201942 CR 24, December 25, 2019, effective 1/14/202043 CR 17, September 10, 2020, effective 9/30/202043 CR 13, July 10, 2020, effective 11/2/202043 CR 24, December 25, 2020, effective 1/15/202145 CR 07, April 10, 2022, effective 4/30/202245 CR 09, May 10, 2022, effective 5/30/202245 CR 13, July 10, 2022, effective 7/30/2022