Okla. Admin. Code § 385:15-1-23

Current through Vol. 42, No. 4, November 1, 2024

Section 385:15-1-23 - Measurement standards for oil and gas removal

Measurement standards for oil and gas removal shall be as follows:

(1)Oil tanks and tank batteries.

(A) Oil shall be gauged in tanks located on the leased premises.

(B) Tanks shall be properly set, free from leakage, sufficiently gas tight, and maintained to preserve the full gravity of the oil, and to prevent evaporation losses.

(C) The lessee shall be accountable for all oil lost by leakage, overflowing, or for other reasonably preventable reasons.

(D) Oil produced from more than one lease may be stored in a common tank battery only with written approval of a common tank battery agreement by the Land Office.

(E) Lessee requests for approval of a common tank battery shall be accompanied by proof of settlement for surface damages with the Land Office's surface lessee, if applicable, and payment of a common tank battery approval fee to be set by resolution of the Board.

(2)Oil tank requirements.

(A) All tanks shall be strapped to a full 100 percent of their capacity and individual tank tables shall be prepared and submitted.

(B) Tank strapping shall be measured and calibrated using American Petroleum Institute Standards for measuring, sampling, and testing crude oil.

(C) The lessee shall supply the Land Office with a certified copy of the original strapping showing the tank number, make, and size.

(D) Any tank moved bodily, taken down and reset, or altered in any way that might change the capacity thereof; shall be treated as a new tank and lessee shall assign a new number.

(E) When lessee prepares new tank tables or assigns new numbers are to old tanks, reference to prior tank tables or tank numbers shall be provided to the Land Office.

(3)Oil measurement.

(A) Oil shall be measured by gauge pole or measuring line marked and numbered in full standard feet, inches, and fractions thereof and in a clearly legible manner. Numbering for measurements shall start from the base of said line or pole.

(B) Measurements of oil depth shall be taken consistently from the same gauge or thief hole in the tank deck. The floor of the tank directly under the point of measurement shall be level and free from obstructions.

(C) Oil shall be measured from the tank floor to the top surface of the liquid level.

(D) Oil measurement readings shall be recorded to the nearest one-quarter inch.

(E) Oil shall not be measured by automatic custody transfer without prior approval of the Commission in writing.

(F) Bottoms and solids removed from tanks shall be measured by first measuring from the tank floor to the top surface of the liquid level immediately prior to removal and immediately after removal. Both measurements shall be supplied to the Land Office, upon request, with a copy of disposal invoices. Bottoms and solids removed without sufficient evidence of disposal shall be considered marketable production and lessee shall pay a royalty on such volumes as if sold under the terms of the lease.

(4)Oil temperature. Oil temperature shall be taken at the same time oil is measured. The temperature shall be representative of the average temperature of the entire body of oil from the tank bottom to the top of the liquid surface. The temperature in tanks with a capacity less than 500 barrels shall be taken by suspending a standard thermometer for at least five minutes, at a point not less than twelve inches from the side of the tank, and midway between the tank bottom and the top surface of the oil.

(5)Oil sample. The observed A.P.I. gravity and hydrometer temperature shall be taken in a sample representative of the merchantable body of the oil and shall be taken and recorded at the time of measurement. Samples shall be tested for gravity from a sealed sample and not by an unsealed (open vapor) hydrometer.

(6)Instruments of measurement. All instruments used in determining temperature, A.P.I. gravity, water, and sediment shall be of a standard make, of reputable manufacture, accurately calibrated, and in good working order.

(7)Oil gravity and volume. The observed gravity and the observed volume of oil shall be corrected to the standard of 60 degrees Fahrenheit consistent with National Standard of Petroleum Tables.

(8)Run tickets. Run tickets shall be legible, properly executed at the time measurements are taken, and shall contain all information necessary to complete final calculations. Lessee shall furnish the original run tickets or a carbon copy to the Land Office, upon request.

(9)Gas metering. Gas of all kinds shall be subject to royalty and shall be measured by a meter approved for general use by the oil and gas industry. All measurements shall be adjusted to conform to the Standard Gas Measurement Act.

(10)Gas measurement. Tests to determine the approximate natural gas liquid and non-hydrocarbon gas content of gas delivered to plants processing natural gas liquids and non-hydrocarbon gas shall be provided by the lessee at the request of the Land Office to check plant efficiency and to obtain an equitable basis for allocating the natural gas liquid and non-hydrocarbon gas output of any processing plant.

Okla. Admin. Code § 385:15-1-23

Amended at 14 Ok Reg 3171, eff 7-25-97

Amended by Oklahoma Register, Volume 38, Issue 24, September 1, 2021, eff. 9/11/2021