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

  Measurement standards for oil and gas removal are as follows:

(1)   Oil tanks and tank batteries. The oil shall be gauged in tanks located on the leased premises. Such tanks shall be properly set, free from leakage, and sufficiently gas tight, and so maintained as to preserve, so far as possible, the full gravity of the oil and prevent undue evaporation losses. The lessee shall be accountable for all oil lost by leakage, overflowing, etc. Oil produced from more than one lease may be stored in a common tank battery upon written approval of a common tank battery agreement by the Commission. All requests for approval of a common tank battery must be accompanied by proof of settlement for surface damages with the surface lessee, and the approval fee. (See 385:15-1-32)

(2)   Oil tank requirements. All tanks shall be strapped to a full 100 percent of their capacity, and individual tank tables shall be prepared and submitted in accordance therewith. All strapping tank measurement, and calibration shall be done in accordance with "Tank Measurement and Calibration", of the A.P.I. Code for measuring, sampling and testing crude oil. The Commissioners shall be supplied with a certified copy of the original strapping, showing the tank number, make and size. 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 a new number shall be assigned. When new tank tables are prepared, they should show by number the previous tables applying; also, when new numbers are given to old tanks, the table applying should be shown.

(3)   Oil measurement. The oil shall be measured by gauge pole or measuring line on which is marked and numbered, in such a manner so as to be clearly legible full standard feet and inches and fractions thereof, such numbering started from the base of said line or pole. All measurements taken shall be from the same gauge or thief hole in the tank deck, and the floor of the tank directly under such point of measurement shall be level and free from all obstructions whatsoever. The oil shall be measured from the tank floor to the top surface of the liquid level, and readings shall be taken to the nearest one-quarter inch and so recorded. No oil shall be measured by automatic custody transfer without approval of the Commission in writing. All 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 of the bottoms and solids and again immediately after removal; both measurements must be supplied to the Commissioners of the Land Office, upon request, with a copy of disposal invoices or said volumes shall be deemed marketable production and royalties due on said volumes as if sold at market value of oil.

(4)   Oil temperature. The temperature of all oil shall be taken at the same time it is gauged. 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. In tanks of 500 barrels or less in capacity the temperature 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 at the time of measurement and so recorded. Pipeline oil must 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 must 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. Fahrenheit in accordance with the National Standard of Petroleum Tables.

(8)   Run tickets. All run tickets must be legible and properly executed at the time measurements are taken and must contain all information necessary to complete the final calculations. The original of these tickets, or carbon copy thereof, must be furnished to the Commissioners of the Land Office, upon request.

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

(10)   Gasoline measurement. Tests to determine the approximate gasoline content of gas delivered to plants processing gasoline or rendering liquids are required to check plant efficiency and to obtain an equitable basis for allocating the gasoline output of any plant to the several sources from which the gas treated is derived. The gasoline content of the gas delivered to each gasoline plant treating gas from lease lands shall be determined periodically by field tests for determining the percentages of each lease being processed.

[Source: Amended at 14 Ok Reg 3171, eff 7-25-97]