Louisiana Administrative Code
Title 43 - NATURAL RESOURCES
Part XIX - Office of Conservation-General Operations
Subpart 9 - Statewide Order No. 29-G-1
Chapter 23 - Automatic Custody Transfer
Section XIX-2305 - Order

Universal Citation: LA Admin Code XIX-2305

Current through Register Vol. 50, No. 9, September 20, 2024

A. From and after the effective date hereof, permission to measure and transfer custody of liquid hydrocarbons by use of methods other than customary gauge tanks may be obtained as hereinafter provided and upon strict compliance with the procedure set forth herein.

B. No permission to use methods other than customary gauge tanks for measurement and custody transfer of liquid hydrocarbons will be granted unless and until the following data and information have been filed with the commissioner with a copy to the district manager:

1. a completed application form for permission to measure and transfer custody of liquid hydrocarbons by use of methods other than customary gauge tanks along with the requisite fee;

2. a diagrammatic sketch of the mechanical installation to be used along with a detailed explanation of the flow of liquid hydrocarbons, indicating locations of locking devices and seals to provide assurance against or evidence of tampering;

3. a cosigned statement by producer and carrier that, in their opinion, the transfer of liquid hydrocarbons in the manner proposed will provide reasonably accurate measurement and will not create inequities, and will afford the owner of any interest the opportunity to recover his just and equitable share of production. The statement incorporated in the application form will suffice for this purpose if signed by both parties, otherwise a separate statement is required;

4. a list of interested parties. This list shall include only those parties who have interests in the leases and/or units from which production is to be measured and custody transferred if approval is granted to the applicant and for which the applicant has no existing authority.

C. Notice of the filing of an application to measure and transfer of custody of liquid hydrocarbons by use of methods other than customary gauge tanks shall be published in the Official Journal of the State of Louisiana (by the Office of Conservation) and mailed (by the applicant) to the interested parties with an affidavit of mailing submitted to the Office of Conservation. A copy of the application does not have to be mailed to all interested parties.

D. No administrative approval for measurement and automatic custody transfer of liquid hydrocarbons will be granted, if, in the judgment of the commissioner, after considering all the data and information submitted, including any opposition expressed by interested parties, administrative approval is not warranted, or in the event any interested party files an application for a public hearing opposing the granting of authority for measurement and automatic custody transfer, together with the requisite hearing fee, within 10 days following the first publication of the notice of the application. The party seeking authority for measurement and automatic custody transfer may elect to file an application setting the matter for consideration at a public hearing if administrative approval is not granted.

E. Should the application for measurement and automatic custody transfer of liquid hydrocarbons be approved, the applicant shall provide a suitable means of testing each meter in order that its accuracy in operation can be proven, such testing to be done before or at the time the meter is initially installed and monthly thereafter or at such other times as the Commissioner of Conservation shall prescribe. The applicant shall retain the actual reports of such tests, and such reports shall be kept on file and available for inspection by any agent of the Office of Conservation or any interested party for a period of not less than three years.

F. This Statewide Order shall supersede Statewide Order No. 29-G, but shall be in addition to all other statewide orders, rules and regulations affecting the production and measurement of liquid hydrocarbons heretofore promulgated. To the extent of any conflict with such other statewide orders, rules and regulations, however, the provisions of this statewide order shall govern.

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:4 et seq.

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