Hydrocarbon management

Transcription

1 Hydrocarbon management HM 39 A guide to recommended measurement practice for compliance with the requirements of HMRC Notice 179

2 HYDROCARBON MANAGEMENT HM 39 A GUIDE TO RECOMMENDED MEASUREMENT PRACTICE FOR (Replaces Petroleum Measurement Paper No. 7, March 1995) First edition August 2009 Published by ENERGY INSTITUTE, LONDON The Energy Institute is a professional membership body incorporated by Royal Charter 2003 Registered charity number

3 The Energy Institute (EI) is the leading chartered professional membership body supporting individuals and organisations across the energy industry. With a combined membership of over individuals and 300 companies in 100 countries, it provides an independent focal point for the energy community and a powerful voice to engage business and industry, government, academia and the public internationally. As a Royal Charter organisation, the EI offers professional recognition and sustains personal career development through the accreditation and delivery of training courses, conferences and publications and networking opportunities. It also runs a highly valued technical work programme, comprising original independent research and investigations, and the provision of IP technical publications to provide the international industry with information and guidance on key current and future issues. The EI promotes the safe, environmentally responsible and efficient supply and use of energy in all its forms and applications. In fulfilling this purpose the EI addresses the depth and breadth of energy and the energy system, from upstream and downstream hydrocarbons and other primary fuels and renewables, to power generation, transmission and distribution to sustainable development, demand side management and energy efficiency. Offering learning and networking opportunities to support career development, the EI provides a home to all those working in energy, and a scientific and technical reservoir of knowledge for industry. This publication has been produced as a result of work carried out within the Technical Team of the Energy Institute (EI), funded by the EI s Technical Partners. The EI s Technical Work Programme provides industry with cost-effective, value-adding knowledge on key current and future issues affecting those operating in the energy sector, both in the UK and internationally. For further information, please visit The EI gratefully acknowledges the financial contributions towards the scientific and technical programme from the following companies: BG Group Maersk Oil North Sea UK Limited BP Exploration Operating Co Ltd Murco Petroleum Ltd BP Oil UK Ltd Nexen Centrica Saudi Aramco Chevron Shell UK Oil Products Limited ConocoPhillips Ltd Shell U.K. Exploration and Production Ltd ENI Statoil Hydro E. ON UK Talisman Energy (UK) Ltd ExxonMobil International Ltd Total E&P UK plc Kuwait Petroleum International Ltd Total UK Limited Copyright 2009 by the Energy Institute, London. The Energy Institute is a professional membership body incorporated by Royal Charter Registered charity number , England All rights reserved No part of this book may be reproduced by any means, or transmitted or translated into a machine language without the written permission of the publisher. ISBN Published by the Energy Institute The information contained in this publication is provided as guidance only and while every reasonable care has been taken to ensure the accuracy of its contents, the Energy Institute cannot accept any responsibility for any action taken, or not taken, on the basis of this information. The Energy Institute shall not be liable to any person for any loss or damage which may arise from the use of any of the information contained in any of its publications. Further copies can be obtained from: Portland Customer Services, Commerce Way, Whitehall Industrial Estate, Colchester CO2 8HP, UK. t: +44 (0) e: sales@portland-services.com Electronic access to EI and IP publications is available via our website, Documents can be purchased online as downloadable pdfs or on an annual subscription for single users and companies. For more information, contact the EI Publications Team. e: pubs@energyinst.org

4 CONTENTS Page Foreword...v Acknowledgements.... vi 1 Introduction and scope Health, safety and environment General metering practice Introduction Metering systems Applications Multi-product metering systems Data transmission Performance standards for flowmeters Introduction Read-out and display Performance requirements Loading rack meters Meter proving Frequency of proving Proving equipment and systems Proving conditions Proving methods Proving meters with a pipe prover Low flow performance and linearity factor Meter temperature correction Line pressure correction Monitoring meter factors Security of metering systems Meter records General Meter history sheet Proving records Quantity measurement by methods other than metering General Level measurement Gauging road tankers and rail cars Weighing road and rail vehicles...25 iii

5 10.5 Water measurement and drainage Pipeline contents Density measurement Product temperature measurement Introduction Tank temperature measurement Line temperature measurement Operational procedures Testing and calibration of temperature measurement systems Measurement reconciliation Principles of reconciliation Reconciliation procedures Delivery reconciliations...34 Annex A Glossary of terms...36 Annex B List of references...40 iv

6 FOREWORD The EI Hydrocarbon Management committee (HMC) is responsible for the production and maintenance of standards and guidelines covering various aspects of static and dynamic measurement of petroleum. The Hydrocarbon Management subcommittee 6 (HMC 6) deals primarily with petroleum measurement and loss control downstream of the refinery. HMC 6 membership is made up of experts from the oil industry, equipment manufacturers, cargo inspectors and government authorities. Liaison is maintained with parallel working groups of the American Petroleum Institute's Committee on petroleum measurement and other organisations concerned with quantitative measurement in other countries and in other industries. The EI Hydrocarbon management guidelines (formerly Petroleum Measurement Manual and Petroleum Measurement Papers) are widely used by the petroleum industry and have received recognition in many countries by consumers and the authorities. In order to promote their wide adoption internationally, it is the policy to submit selected standards via the British Standards Institution to the International Standards Organisation's technical committee TC-28 Petroleum products and lubricants, as potential international standards. A full list of Hydrocarbon Management guidelines is available on request from the Energy Institute. The EI Hydrocarbon Management guidelines are recommended for general adoption but should be read and interpreted in conjunction with safety, environmental, weights and measures, customs and excise and other regulations in force in the particular country in which they are to be applied. Such regulatory requirements have precedence over corresponding clauses in the EI document. Users should also consider contractual constraints imposed by charterers, cargo owners, ship owners and any other interested party. Although it is believed that adoption of the recommendations of this guideline will assist the user, the Energy Institute cannot accept any responsibility, of whatsoever kind, for damage or alleged damage arising or otherwise occurring on vessels or in or about premises where this document has been applied, as final responsibility for adequate preparation of the vessel to receive cargo lies with the parties controlling this task. Users of these guidelines are invited to send comments, suggestions, or details of relevant experience to: Technical Department Hydrocarbon Management Energy Institute 61 New Cavendish Street London W1G 7AR technical@energyinst.org v

7 ACKNOWLEDGEMENTS HM 39 replaces the previous EI guidance contained in Petroleum Measurement Paper No. 7, March 1995, which has been withdrawn. This updated version was prepared by members of the Energy Institute Hydrocarbon Management HMC-6 sub-committee on which the following organisations were represented: HM Revenue and Customs NWML (National Weights and Measures Laboratory); an agency of DIUS (Department for Innovation, Universities and Skills) UK Petroleum Industries Association Trading Standards The Energy Institute particularly wishes to acknowledge contributions from Bob Carson of ExxonMobil (Committee Chair), Richard Seed and George Menzies of HMRC and Alan Thorogood (Consultant). vi

8 1 INTRODUCTION AND SCOPE In the UK, HM Revenue and Customs (HMRC) require sound guidelines for the measurement of mineral (hydrocarbon) oils out of duty suspended¹ premises, and certain fuel substitutes² when raising revenue accounts. The mandatory measurement requirements are to be found in HMRC Notice 179 November 2006 Motor and heating fuels: General information and accounting for excise duty and VAT. This guide has been prepared to disseminate the measurement practices required to meet the mandatory requirements of Notice 179. Where mandatory requirements are reproduced in this publication they appear in bold type³ & 4 ). This is to avoid confusion between the Energy Institute recommended practice and HMRC mandatory requirements. It may be noted that current industry best practice may result in higher measurement precision than is required by Notice 179. This publication deals not only with flow measurement, but includes level, weight and temperature measurement. Temperature correction is an essential function in the measurement of oils since the adoption of standard temperature accounting (STA) as a basis for taxation of petroleum fuels by the European Union in For simplicity, existing EI publications are cross-referenced where possible. At various points in these guidelines reference is made to accuracies and working tolerances of various forms of measurement (volumes, levels and temperature). It should not be assumed that these standards of accuracy, or working tolerances, relate to standard conditions. Instead, each should be read as an individual, practical standard. The levels of performance specified for flowmeters are those required by Notice 179. They may appear less rigorous than those recommended in other EI Hydrocarbon Management publications; however, Notice 179 requirements apply at all times throughout the operating life of a meter, whereas those defined in the EI documents relate specifically to the time of meter proving. The EI recommends that its published guidance be observed to ensure that, as far as practicable, the requirements of Notice 179 are met. If users responsible for duty-suspended installations experience difficulty in complying with the mandatory measurement requirements of Notice 179 (as reproduced in bold type in this document) they should seek advice from HMRC. 1 Excise duty on oil is chargeable when products are delivered from 'approved' duty-suspended (formerly known as 'bonded') installations. Such premises provide a facility for oil to be stored without prior payment of excise duty. Product is referred to as being stored 'under duty suspension'. 2 Fuel substitute producers and biofuel producers may 'set aside' fuels for use in road vehicles. The quantity 'set aside' becomes liable to a duty charge see Notice 179E. 3 Where reference is made in HMRC mandatory requirements to actions performed by the National Weights and Measures Laboratory and Trading Standards officers, this shall include other organisations approved by the BERR (Department for Business, Enterprise and Regulatory Reform) and/or DIUS to carry out such duties. 4 Bold type refers to that used other than in headings and titles. 1

9 2 HEALTH, SAFETY AND ENVIRONMENT This document does not address safety issues. However, health, safety and environmental protection concerns should, at all times, take precedence over measurement requirements. Many of the measurement techniques, especially manual procedures, described in this publication involve potential hazards and should only be performed after the hazards have been assessed and risks mitigated, in accordance with recognised industry safe practices. If in doubt about safety issues, specialist advice should be sought. 2