Current through Register Vol. 47, No. 17, September 10, 2024
a.
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); and
C. 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.
