What is MARP?

M – Measurement
A – Accounting
R – Reporting
P – Plan

Within Alberta and Saskatchewan it is required that if a producer wants to build a thermal bitumen scheme (Alberta) or thermal heavy oil recovery scheme (Saskatchewan) they are obligated to have an approved MARP (Measurement, Accounting, and Reporting Plan) approval in place.

Why is a MARP Important?

A MARP will allow a company to understand the facilities set up, operating procedures, process flows, and accounting and reporting practices. The process of developing a MARP can take several months and will take multiple stakeholder groups to ensure its contents are accurate and meet all requirements.

What are the MARP Requirements?

General project outline:

  1. Full company name and Business Associate Identifier
  2. Project name and number (if existing project)
  3. Application number
  4. Company contacts
  5. General project/process description and location

Measurement Schematic Needs to Include:

  1. All surface facilities associated with the project
  2. A list of all wells associated with the project
  3. All receipt points
  4. All disposition points
  5. All flow lines, fuel lines, flare lines, recycle lines, skim lines, gas-lift lines, solvent injection lines, and utility lines.
  6. All crude oil, emulsion, condensate, and water tanks/storage ponds/vessels, with the dimensions and capacity of each.
  7. All measurement devices, measurement points, and sample points and label and indicate the type of measurement device(s)
  8. Provide a table showing the maximum uncertainty of measurement devices.
  9. If electronic flow measurement (EFM) is used, indicate where measurement devices are configured with EFM.
  10. Boundaries of applicable production facilities.

Current or proposed operating procedures:

  1. Outline the frequency and method of calibration, checking, or proving for each measurement device
  2. Outline the method of gauging tanks/storage ponds/vessels and the frequency of calibrating applicable gauging devices.
  3. Outline the method(s) of measuring, sampling, and recording production moved by truck to or from the facilities associated with the scheme.
  4. Outline the frequency and method of determining the water cut of proration test production. 
  5. Provide the criteria for accepting or rejecting proration tests. 
  6. Outline the method used to determine well production rates during load fluid recovery.
  7. Outline the proration test procedure and purge time for wells on common flow lines. 
  8. Outline the proration test procedure and purge time for wells producing to field headers. Provide test line capacity and test and group operating line pressures. 
  9. List wells using casing head gas and/or produced gas for fuel.
  10. List the wells using gas lift. 
  11. Provide detail on how primary and secondary measurements will be performed at the facility.

Accounting Calculations and Reporting:

  1. Provide a sample worksheet for determining the estimated crude oil, gas, and water production for each well.
  2. For each production facility reporting to Petrinex, provide the calculations and cite the applicable measurement points used to determine the following: 
  3. Bitumen/Crude oil production, disposition(s), and inventories.
  4. Gas production, disposition(s), and receipts. 
  5. Water production, disposition(s), receipts, and inventories
  6. Water source production, disposition, receipts, and inventories; include copies of the most recent water analysis for all water wells and sources.
  7. Condensate, solvent, and non-condensable gases receipts, injection, disposition, and inventories.
  8. Total fuel, flare, and vented gas.

You will need to outline the methods used to: 

  1. Calculate/estimate the volume of water vapor in the metered gas streams and procedures used.
  2. Determine shrinkage when blending hydrocarbon liquids with densities differing more than 40.0 kilograms per cubic meter.
  3. Determine shrinkage when condensate (diluent) is flashed through heavy crude oil treating and other process equipment.
  4. Estimate unmetered flare, fuel, vented, and other gas streams; include sample calculations showing all particulars.
  5. Estimate gas in solution with oil dumped to stock tanks and with crude oil at proration test conditions.
  6. Determine recovery of injected solvent and non-condensable gases distinct from heavy crude oil and solution gas production.
  7. Describe any other estimate, correction, or adjustment procedures used to calculate volumes. 
Oil and gas regulatory and measurement

It’s an overwhelming task to not only build one of these facilities but to also meet the requirements to get it approved. The reassuring part of is that many companies have undertaken this task and succeeded.

Intricate’s Measurement and Regulatory Reporting programs and services are designed to ensure compliance with provincial and state regulations while maintaining a cost-effective business process.

Our services focus on:

  • Complete Measurement Compliance Program Management
  • MARP (Measurement, Accounting & Reporting Programs)
  • Measurement, Accounting, and Reporting Training Programs
  • Technical Metering Support, Troubleshooting & Installation
  • Metering Schematic diagram development
  • Production Allocation Development and Auditing
  • EPAP Implementation & Consulting
  • Regulatory Application Development
  • Regulatory Compliance Management

Read More: “Why Measurement Matters.”

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