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Gas and liquid analysis sampling AER rules

Posted by Community User

gas and liquid sampling rules AER Alberta CanadaLike many places around the globe that produce oil and gas, in Canada the Alberta Energy Regulator (AER) has specific rules for oil, gas, and related hydrocarbon sampling and analysis in Section 8 of Directive 017. This covers the type of sample to be taken, the analysis procedure, and what the resulting compositions are to be recorded.

We will take a look at what these mean and how to implement a strategy for compliance and some of the tools you may find helpful to get there.

When gas and liquid analysis compositions are due

In Alberta, Directive 017 Section 8, there are specific rules for where and how to sample and when to report hydrocarbon liquids as liquid or a gas equivalent volume (GEV). Table 8.3 in Section 8.4 Directive 017 gives a comprehensive list of sampling frequencies for all upstream oil and gas operations for gas and condensate analysis (to see Table 8.3, click here). In Section 8.4, there are listed exceptions to the sampling frequency if the stream meets some specific conditions or the operator can apply to the AER for special approval.

Note: Crude oil/bitumen analysis is not covered in Section 8 of Directive 017, but is required in Section 14 to sample and analyze for density and water cut.

From Directive 017, sampling frequencies are defined as follows:

Initial – an analysis is required within the first six months of operation only, with no subsequent updates required

Monthly – an analysis is required at least once per calendar month

Quarterly – an analysis is required at least once per calendar quarter

Semiannually – an analysis is required at least once every two calendar quarters

Annually – an analysis is required at least once every four calendar quarters

Biennially – an analysis is required at least once every eight calendar quarters

Calendar quarters are January to March, April to June, July to September, and October to December

gas and liquid sampling rules AER Alberta Canada
The timing in Table 8.3 of Directive 017 has built in flexibility so that the operator has a window of one calendar quarter to complete the sampling and analysis for each stream unless it is initial or monthly. For example, for an annual frequency, if the last sample was taken in July 2014, the operator has to take another sample by the end of September 2015 (end of the calendar quarter).

New gas and liquid samples must be taken for all new wells and measurement points by the end of the month following the first month of production.

When you miss your gas and liquid composition due date

If the AER inspector or auditor found that the sampling and analysis frequency wasn’t followed, or the analysis wasn’t used or updated within the allowed time frame, then they can assign non-compliance events in accordance with Directive 019 for each occasion.

In addition to a non-compliance event recorded with the AER, if the latest analysis wasn’t used or an incorrect analysis was used in the accounting system, the following may happen:

  • Volumetric flow calculation is incorrect based on the previous analysis that leads to amendments later when the error is discovered
  • In the case of just gas analysis used instead of recombined gas/condensate analysis, that stream will receive less liquid hydrocarbon product during the allocation process, less revenue, and incorrect royalty payment which will lead to amendments later

For additional details and help please contact our experts.

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Topics: Zedi Composition Management, AER, gas and liquid, Emerson's Zedi Access

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