Capacity Allocation Mechanism for Licensed Petroleum ... TO PIPELINE FACILITIES... · Licensed...

Capacity Allocation Mechanism for

Licensed Petroleum Storage Facilities

Transnet Pipelines Tarlton Facility

(c/o Rustenburg and Ventersdorp Road, Tarlton, Krugersdorp)

(License Number PPL.sf.F3/19/2006)

September 2011

Commercial in Confidence

TABLE OF CONTENTS

Commercial in Confidence. Page i

All Rights Reserved.

TABLE OF CONTENTS

1. INTRODUCTORY TERMS AND CONDITIONS ...................................................................................... 1

1.1 Petroleum Storage Facility ........................................................................................................ 1 1.2 Pipeline Access ........................................................................................................................... 1 1.3 Uncommitted Capacity ............................................................................................................ 2

2. TARIFFS ............................................................................................................................................. 3

3. CONTRACTUAL TERMS AND CONDITIONS OF USE .......................................................................... 4

3.1 Storage Capacity ....................................................................................................................... 4 3.2 Scheduling and Planning .......................................................................................................... 5 3.3 Custody of Petroleum ................................................................................................................ 6 3.4 Product Dispatch ........................................................................................................................ 7 3.5 Petroleum Type and Quality Control ...................................................................................... 8 3.6 Slops Management .................................................................................................................... 9

4. TERMS AND CONDITIONS OF PAYMENT ......................................................................................... 10

4.1 General ....................................................................................................................................... 10 4.2 Invoicing ..................................................................................................................................... 10 4.3 Account Suspension ................................................................................................................. 11

5. TECHNICAL REQUIREMENT FOR ACCESS TO STORAGE FACILITIES ............................................. 12

6. PROCESS TO BE FOLLOWED TO REQUEST ACCESS ....................................................................... 13

6.1 Pre-Requisite .............................................................................................................................. 13 6.2 Existing Clients ............................................................................................................................ 14 6.3 Prospective Clients ................................................................................................................... 15

This document contains proprietary information and intellectual property, and may not be disclosed,

used or reproduced, stored in a retrieval system, or transmitted in any form or by any means,

electronically, mechanically, photocopying, recording, or otherwise without the prior written permission

of Transnet.

This document and the contents thereof may not be used by any other party for sourcing of

competitive proposals, as a basis for performing the work described herein, or for any other commercial

purpose, without the prior written permission of Transnet.

Copyright © Transnet 2011. All Rights Reserved.

INTRODUCTION

Commercial in Confidence. Page 1


1. INTRODUCTORY TERMS AND CONDITIONS

1.1 Storage Facility

1.1.1 Transnet Pipelines (the Licensee) operates a licensed Petroleum Storage

Facility at Tarlton (corner Rustenburg and Ventersdorp Road, Tarlton, Krugersdorp –

license number PPL.sf.F3/19/2006) – herein referred to as the “Petroleum Storage

Facility”.

1.1.2 The Petroleum Storage Facility is an extension of Transnet Pipeline’s national

pipeline network and is essentially used for the distribution of liquid fuel products and

to enable the efficient operation of the pipeline between Durban and

Johannesburg. Products can be stored at this facility for a limited period only (refer

below to Chapter 2 – Tariffs, for the applicable NERSA approved storage tariffs)

1.1.3 Transnet Pipelines owns and operates a number of storage tanks at the

Petroleum Storage Facility. These tanks allow for a limited storage period to facilitate

the efficient handling of petroleum products prior to transfer to road or rail.

1.2 Pipeline Access

1.2.1 The Petroleum Storage Facility receives all fuel products exclusively via

pipeline delivery.

1.2.2 Any client who wishes to make use of the Petroleum Storage Facility for

petroleum storage of their fuel products requires pipeline access as a pre-requisite

for their participation at the Petroleum Storage Facility.

1.2.3 Pipeline access may be by means of a contractual agreement directly

between the client and Transnet Pipelines (Conveyance Agreement) or by means of

a contract with a host company who has a contractual agreement with Transnet

Pipelines for the delivery of liquid fuel product to the Tarlton Petroleum Storage

Facility.

1.2.4 The terms and conditions of use - the service fees, tariffs and the process to

follow for establishing such a contractual agreement with Transnet Pipelines falls

outside the scope of this allocation mechanism. The client should engage with

Transnet Pipelines directly regarding the necessary procedures to follow to gain

access to the pipeline.

INTRODUCTION



1.3 Uncommitted Capacity

1.3.1 Uncommitted capacity in the context of this document refers to the

“throughput capacity” and not to “storage capacity”. The Petroleum Storage

Facility offers storage for a limited period only.

1.3.2 Clients may use this allocation mechanism as a guideline for the allocation of

petroleum storage at the Tarlton facility. The document stipulates:

i. A tariff schedule

ii. The contractual terms and conditions for use of the facility

iii. Contractual terms and condition for payment

iv. Access to the Petroleum Storage Facility, and

v. The process to follow to request access

TARIFFS



2. TARIFFS

2.1.1 The table below lists the currently NERSA approved tariffs for the Tarlton

Petroleum Storage Facility.

Tariffs as Approved by NERSA for the Tarlton Petroleum Storage Facility

Tariffs (c/l) 2011/12 2012/13

1 – 7 days 7.72 8.31

8 – 14 days 11.59 12.47

12 – 21 days 23.27 24.93

22 – 31 days 34.56 37.40

2.1.2 All Tariffs includes VAT

2.1.3 The 2011/12 tariffs are effective until 31st March 2012 where after the 2012/13

tariffs will apply

2.1.4 Transnet Pipelines will review these tariffs from time to time and apply for a

revised tariff from the National Energy Regulator (NERSA), according the

process prescribed by NERSA

2.1.5 On approval of a revised tariff structure, the revised tariff will be

communicated to all clients in writing, it will be available from the Licensee on

request and will be published on the energy regulator’s website

(http://www.nersa.org.za)

http://www.nersa.org.za/

CONDITIONS OF USE



3. CONTRACTUAL TERMS AND CONDITIONS OF USE

3.1 Storage Capacity

3.1.1 The Petroleum Storage Facility currently offers 28,600 m3 of workable capacity

as in the table below. The capacity per product grade is 11,200 m3 for 500

ppm Diesel and 17,400 m3 for 93 Octane Unleaded Petrol.

Tank No

Tank Capacity in

Litres

Volume below

Striker Plate

Unpumpable 5% Volume of Tank

Capacity in Litres

Total Transnet Pipeline

Stock holding

Working Capacity

m3

Diesel 500

A1 6,017,586 40,495 300,879 Total 600,668

5,600

A2 5,995,779 41,862 299,789 5,600

93 ULP

A3 5,188,388 34,605 259,419

Total 966,953

4,700

A4 5,187,293 35,516 259,365 4,700

A5 3.575,906 39,246 178,795 3,200

A6 3,568,770 30,492 178,439 3,200

A7 462,693 8,413 23,135 400

A8 460,129 7,711 23,006 400

A9 895,886 12,180 44,794 800

3.1.2 The assignment of product grades to tanks may change according to

requirements.

3.1.3 The Licensee owns all unpumpable - or dead stock in all product tanks.

3.1.4 The Client is not allocated segregated storage capacity. Each Client is

allocated a certain throughput volume according to the agreements entered

into with Licensee. The amount of volume in tank per product per client will

vary over time according to the volume of product received and dispatched

by the client.

3.1.5 A receiving tank’s volume is measured for quantity assurance purposes by

dipping before and after each delivery. Dip volume measurements are

compensated for differences in temperature or density through volume

conversion tables.

3.1.6 The exact volume delivered is measured electronically. The Petroleum

Storage Facility makes use of turbine flow meters, one for each product. A

meter prover upstream of the flow-meter proves the volume delivered. The

meter prover is calibrated for accuracy once every two years. The latest

certificate of calibration is included in Annexure C.

3.1.7 All measurements occur at standard temperature and pressure (20 °C, 101.325

kPa). The metering software compensates for differences in ambient

CONDITIONS OF USE



temperature, atmospheric pressure and density when registering the volume

measurement.

3.1.8 The meter printed receipt (refer Annexure D) is deemed binding of the volume

received. Should a dispute arise, or a fault with the metering equipment be

suspected, the manual dipping measurements above will be agreed upon by

the parties and used.

3.2 Scheduling and Planning

3.2.1 The Petroleum Storage Facility keeps detailed stock progression records. Each

client’s allocated throughput volume is updated daily on product receipts

and product dispatches to keep track of the volume of each product in tank

allocated to each client.

3.2.2 Clients are required to remove their product from the facilities within 7 days

following official notification by the Licensee that the product has arrived at

the facility.

3.2.3 Failure to move product within the prescribed period above will incur a

penalty per litre of product as stipulated in the tariff schedule (refer chapter 2)

3.2.4 The client is responsible for all pipeline product receipt schedules and

capacity planning according to the terms and conditions as stipulated in their

agreement with Transnet Pipelines or their Host Company. This includes all

indicative and firm order planning (refer Annexure A for an example).

3.2.5 Transnet Pipelines will issue the Petroleum Storage Facility with an Operations

Notice of all planned deliveries one week in advance (see Annexure C for an

extract of an Operations Notice). The Operations Notice contains all relevant

information on all planned product receipts – source, Client, product, size of

product delivery, exact time delivery will start, duration of delivery.

3.2.6 The Petroleum Storage Facility will monitor its ability to take receipt of a client’s

product by pipeline. Should it be unable to take receipt of a product delivery,

the necessary remedial actions as stipulated in the Client’s agreement with

Transnet Pipelines for product deliveries and the necessary fees as applicable

(Transnet Pipeline Service Fees) will be applicable. The remedial actions to be

taken and fees applicable in such a case forms part of the Client’s

contractual agreement with Transnet Pipelines and falls outside the scope of

this allocation mechanism.

CONDITIONS OF USE



3.3 Custody of Petroleum

3.3.1 Custody of all petroleum products transfers to the Licensee the moment that

the product passes from the pipeline through the turbine flow meters into the

Storage Facility.

3.3.2 Custody of petroleum products transfers to the Client the moment the product

flows through the dispatch flow meters for road and rail dispatches.

3.3.3 Any loss of product, or deterioration of product quality due to incorrect

operation of equipment or leakage or faulty equipment or faulty

maintenance of equipment or theft or fire, etc. that the Licensee experiences

for any product that it has custody of has to be replaced to the Client at the

Licensee’s expense.

3.3.4 Any loss of product, or deterioration of product quality due to incorrect

operation of equipment, by the Client’s operator, or leakage or faulty

equipment or faulty maintenance of equipment or theft or fire, etc. of all

product after it passed through the dispatch meters, thus in the custody of the

Client is the Client’s responsibility.

3.3.5 A detailed investigation of each incident will follow in which both the licensee

and client will be involved to determine any additional claims or remedial

actions to be taken by either party for each incident as the incident may

require.

3.3.6 The Licensee will perform a three monthly product reconciliation to determine

any surpluses or losses or product.

3.3.7 Product gains will be prorated to clients according to each client’s

throughput.

3.3.8 Product losses will be paid to the Client.

CONDITIONS OF USE



3.4 Product Dispatch

3.4.1 Product is dispatched from the Licensee’s Storage Facility by road or rail.

3.4.2 All road orders are to be confirmed at least 24 hours in advance and the

necessary documentation lodged with Licensee’s representative. After the

24-hour deadline, orders may be cancelled, but no new orders may be

entered.

3.4.3 The Client’s transporters will arrive between 06:00 and 10:00 in the morning.

Transporters are matched with orders received. Where there is no transporter

for the applicable order, the order is automatically cancelled.

3.4.4 The Petroleum Storage Facility dispatches product by rail to Botswana.

3.4.5 All orders for rail dispatches (next week’s business) are to be lodged and the

necessary documentation submitted with the Licensee’s representative by the

Friday afternoon at 17h00 for the week starting the Monday after the following

Monday, that is the Friday a week before.

3.4.6 The Licensee is able to load a maximum of 36 rail tank cars per day, of which

18 are Diesel and 18 are ULP.

3.4.7 Rail orders are allocated to rail tank cars according to Client orders for rail

transport as far as possible. Where more next week’s business rail orders are

received than available rail tank cars, the next week business’ orders are

allocated by the Licensee pro rata the Client’s orders received.

3.4.8 Required rail tank cars are finalised, order numbers assigned and the orders for

rail tank cars sent to Transnet Freight Rail (TFR) for wagon allocation by

Tuesday at 17h00.

3.4.9 TFR will allocate available wagons, assign consignment numbers to the rail

tank cars according to the order numbers received and confirm consignment

numbers with matched order numbers with Licensee’s representative.

3.4.10 On arrival at the rail yard, consignment numbers and order numbers allocated

to rail tank cars are matched to the Licensee’s records before the rail tank

cars are shunted and loaded. The Client’s dispatched volume is updated with

the actual loaded.

3.4.11 A Client may cancel any pending rail order up until the Wednesday at 17h00

of the week before. The necessary documentation, stating the reason for the

cancellation needs to be submitted with the cancellation.

3.4.12 Licensee will attempt to match cancelled wagons to orders from the

remaining Clients on a pro rata basis if uncommitted orders are available.

3.4.13 All penalties in terms of cancellation of orders are compensated for in terms of

the impact it will have on a client’s ability to move their product within the

CONDITIONS OF USE



prescribed period. Should a client fail to move their product within the

prescribed period (see 3.2.2), a higher tariff will apply.

3.5 Petroleum Type and Quality Control

3.5.1 All petroleum must adhere to South African National Standards (SANS),

specifically:

i. ULP 93 in accordance with SANS 1598: 2006 (metal free)

ii. LSD in accordance with SANS 342: 2006.

3.5.2 Product samples are taken hourly during a pipeline delivery and analysed at

Licensee’s laboratory on site. The tests performed are

i. Temperature,

ii. Density,

iii. Final Boiling Point,

iv. Flash Point and

v. X-Ray for Metal Content

3.5.3 The Licensee will perform the following tests as minimum quality requirement:

PRODUCT

MINIMUM QUALITY REQUIREMENTS

PRODUCT NAME and

CODE PROPERTY UNITS LIMITS

Automotive Diesel (Diesel)

Colour Straw Straw

Density @ 20ºC kg / litre 0,800 minimum

Flash point @ 101,325

kPa º C

62 min at Intake & 55 min at

Delivery (62 at KRO and

KPR)

Haze Rating Number 2 max

Sulphur content mg / litre

(ppm) 500 ppm max

93 Unleaded Petrol (ULP 93)

Colour Yellow Yellow

Density @ 20ºC kg / litre 0,710 to 0,785

Octane Rating N/A 93

Final Boiling Point º C 210 max at intake and 213

max at delivery

Residue Ml 2,0ml max

Haze Rating Number 2 max

Lead Content mg / litre

(ppm) 13 ppm max

Sulphur Ppm 500 max

Manganese Ppm 2 max

CONDITIONS OF USE



3.5.4 After delivery, a representative sample of the tank content is taken for

analysis.

3.5.5 Samples are kept for 30 days.

3.5.6 If during a product injection analysis indicates that the product is off-

specification, the following process is followed

i. The pipeline operator is informed immediately and injection of the

product is stopped

ii. The relevant product tank is measured for volume content and a

representative sample is taken

iii. The representative sample is analysed and if off-specification the Client

and his supplier of the product is contacted

iv. An investigation will be launched to determine liability, if the Client is

found liable the Client will direct Licensee as to where to route the

product in the tank.

v. If the Licensee is at fault, it will direct the product as it sees fit and will

replace any lost volume to all clients as negotiated on a per client basis.

3.6 Slops Management

3.6.1 The Licensee takes possession of all slops the moment it enters the Storage

Facility.

3.6.2 Licensee may re-process the slop at its re-processing facilities to the lowest

degradable specification relevant to the product type.

3.6.3 The reprocessed product will be disposed by one of the following methods

i. Blending it back into delivered products to product specifications, at an

allowable blend rate agreed by all relevant authorities, according to the

pipeline operator’s standard operating procedure for blending

ii. In a market for un-resolvable reprocessed Intermixture

3.6.4 The table below indicated the current permissible blend ratio

Blend Table Product Diesel

500ppm

Diesel 50ppm

ULP 93

ULP 95

Name

Diesel – 500ppm - 1.0 0.25 0.2

Diesel – 50ppm 0 - 0.25

0.25

Jet A1 0 0 0 0

ULP 93 0.25 0.25 - 5.0

LRP 93 0.25 0.25 2.0

2.0

ULP 95 0.25 0.25 0.25 -

TERMS & CONDITIONS OF PAYMENT



4. TERMS AND CONDITIONS OF PAYMENT

4.1 General

4.1.1 All clients must apply for credit using the Standard Credit Application for

Transnet Pipelines. This application is part of the application process

considered in Chapter 6.

4.1.2 Unless otherwise agreed between duly authorized representatives of the Client

and the Licensee respectively, the terms of payment to Licensee shall be by

means of electronic funds transfer (EFT) into Licensee’s Bank Account

4.2 Invoicing

4.2.1 The Licensee generates a weekly tax invoice for each client, which will serve

as an account for services rendered including other amounts due to Licensee

by the Client such as interest charges. The weekly tax invoices will be the:

i) VAT invoice; and

ii) Proof of the VAT payable.

4.2.2 At the end of the calendar month, the Licensee will make print outs of all

weekly invoices and generate a statement for each client. The paper

invoices and statement will be couriered to each client at month end.

4.2.3 All outstanding amounts debited to the Client’s account must be paid within

25 days, on or before the 25th day of the month following the date of

statement. Payments must be made into such account as Licensee may from

time to time notify the Client. When the 25th day is not a Business Day

payment is required on the last Business Day prior to the 25th day following the

date of statement.

TERMS & CONDITIONS OF PAYMENT



4.3 Account Suspension

4.3.1 If the Client has made no payment for outstanding debt or no alternative

arrangements are made within three working days after notification by the

Licensee then the credit account will be suspended.

4.3.2 The Licensee shall inform the Client both telephonically and in writing of the

suspension of their account and that no dispatch orders can be processed

while the account is suspended.

4.3.3 Should a Client wish to re-activate their suspended account they must make a

payment directly into the Licensee’s bank account and fax or email through a

remittance advice.

4.3.4 Once the payment has been verified the Client is to re-perform the credit

application (extension) process.

ACCESS TO STORAGE FACILITY



5. TECHNICAL REQUIREMENT FOR ACCESS TO STORAGE FACILITIES

5.1.1 Any transporter (road or rail) that enters Licensee’s premises has to be in

possession of a Safe Loading Pass (SAF), which is valid for one year.

5.1.2 If the transporter is not in possession of a SAF, it may complete an application

form to be certified accordingly. [Tarlton Road / Rail: New Road Haulage / Rail

Tank Registration Form, Document Number OPS-FORM-020, Annexure E].

5.1.3 On successfully passing the inspection, the transporter will be issued with the

relevant SAF, valid for one year, after which the registration process will be

repeated.

5.1.4 All Bulk Vehicle Operators has to undergo training in the following Unit

Standard (see Annexure F):

The National Certificate in Professional Driving: Convey Dangerous Goods

(In terms if Chapter VIII – Regulation 280 of The National Road Traffic Act 93 of

1996)

Theoretical and Practical Course, Unit Standard 123259:

Comply with Legal docs, Apply Safety Standards, Fire Fighting and Professional

Equipment.

5.1.5 Bulk Vehicle Operators entering Licensee’s facility need to have undergone

the “Contractor Employee SHE Induction”. (Refer Annexure G). The induction

is offered on site.

5.1.6 Road Transporters have to present the following information to gain entry into

Licensee facilities:

i. Transporter: Safe Loading Pass

ii. Transporter: Transport Permit – Storage, Use and Handling of Flammable

Liquids and Substances, issued by Local Municipality (Annexure H)

iii. Transporter: Pressure Test Certificate (Annexure I)

iv. Transporter: Motor Vehicle License and Roadworthy Certificate

v. Transporter: Tarlton Road Haulage Vehicle Pre-Entry Inspection [OPS-

DISTLIST-001, Annexure J]

vi. Bulk Vehicle Operator: Training Certificate as contemplated above

vii. Bulk Vehicle Operator: Contractor Employee SHE Induction

viii. Bulk Vehicle Operator: Driver’s License and certified copy of Identity

Document

5.1.7 Documentation requirements for rail Transporters:

i. Safe Loading Pass

ii. Pressure Test Certificate

iii. The necessary consignment documentation

ACCESS TO STORAGE FACILITIES



6. PROCESS TO BE FOLLOWED TO REQUEST ACCESS

6.1 Pre-Requisite

6.1.1 Any client who wishes to make use of the Petroleum Storage Facility must

have access to the Transnet Pipeline network for delivery of product to the

Petroleum Storage Facility

6.1.2 The application process for access to the pipeline falls outside the scope of

this guideline. The client has to engage with Transnet Pipelines directly re the

necessary process to follow.

6.1.3 In the event of prospective clients not having direct access to the pipeline but

making use of a Host company, prospective clients must make the agreement

with their Host Company for pipeline deliveries available with their application.




6.2 Existing Clients

6.2.1 It is advised that all clients wishing to engage with Transnet Pipelines for

allocation of uncommitted capacity at the Tarlton Petroleum Storage Facility

engage electronically via email with the Transnet Pipelines Commercial

Manager: Operations, Transnet Pipelines prior to applying through the official

channels.

6.2.2 Existing clients should submit:

i. A 12-month forecast of additional volume movement by road per

product and per destination

ii. A 12-month forecast of additional volume movement by rail per product

and per destination

iii. A 12-month forecast of volume intake into the Petroleum Storage Facility

by pipeline

iv. A motivation as to why they require additional capacity

v. Any other information that may assist Transnet Pipelines to gauge the

client’s additional throughput volume requirements

6.2.3 The Commercial Manager: Operations, Transnet Pipelines will advise the client

as to any additional information that may be required.

6.2.4 Once all documentation has been received the Commercial Manager:

Operations, Transnet Pipelines will review the application and provide

feedback to the client within 14 days of receiving the application for an

extension of the client’s throughput volume.




6.3 Prospective Clients

6.3.1 It is advised that all clients wishing to engage with Transnet Pipelines for

allocation of uncommitted capacity at the Tarlton Petroleum Storage Facility

engage electronically via email with the Transnet Pipelines Commercial

Manager: Operations, Transnet Pipelines prior to applying through the official

channels.

6.3.2 All clients seeking to utilise the Petroleum Storage Facility must be registered as

a Wholesaler of Petroleum Products as required by the Petroleum Pipelines

Act, 1977 (Act No. 120 of 1977)

6.3.3 Prospective clients should submit:

vi. A 12-month forecast of volume movement by road per product and per

destination

vii. A 12-month forecast of volume movement by rail per product and per

destination

viii. A 12-month forecast of volume intake into the Petroleum Storage Facility

by pipeline

ix. Any other information that may assist Transnet Pipelines to gauge the

client’s throughput volume requirements

6.3.4 The Commercial Manager: Operations, Transnet Pipelines will advise the client

as to any additional information that may be required.

6.3.5 The Client should complete the Standard Credit Application Form (Transnet

Pipelines) – see Annexure K.

6.3.6 Annexure K, page 2 lists all the supportive documents that should be

submitted with the application form.

6.3.7 Original copies of the Credit Application Form together with all the supportive

documentation as well as all the commercial information contemplated

above (6.3.3 and 6.3.4) are to be submitted in a sealed envelope, attention

the Commercial Manager: Operations, Transnet Pipelines, either by mail to

Transnet Pipelines, PO Box 3113, Durban, 4000;

or by hand to Transnet Pipelines, 202 Anton Lembede Street, Durban, 4001

6.3.8 The Commercial Manager: Operations, Transnet Pipelines will review the

application and inform the prospective client on any additional information

required.




6.3.9 Once all information has been received, the Client will be issued with a letter

stating that Transnet Pipelines had received the application and all supportive

information.

6.3.10 The Client will receive feedback from Transnet Pipelines re the status of its

application within 30 days from the date of the letter above confirming

receipt of the application and all supporting documentation.

6.3.11 Based on the information received, Transnet Pipelines will perform a credit risk

analysis on the Prospective Client to determine whether its financial

performance meets the required financial criteria.

6.3.12 Transnet Pipelines will perform an external credit assessment on the

Prospective Client credit profile; the Prospective Client must provide a letter

granting Transnet Pipelines the authority to do so.

6.3.13 Dependent on the results of the Prospective Client’s credit analysis, a Bank

Guarantee, the value of which will be determined by Transnet Pipelines, may

have to be provided by the Prospective Client. (The format of the Bank

Guarantee will be provided by Transnet Pipelines)

ANNEXURES



ANNEXURES

ANNEXURE A



1. FORECASTS, NOMINATION AND SCHEDULING

Forecasts

Shipper shall provide the Carrier with Indicative Nomination forecast

volumes for three month as detailed in the SHIPPER MANUAL,

Section 7: Nominations and Scheduling Sequence of Events.

Shipper shall provide, on request from the Carrier, a bi-annual forecast of

intended volumes to be transported in the Main Pipeline. The

forecast data shall include Product grade, Intake Point, Delivery

Point and volume per year.

The Shipper shall ensure that the Carrier is informed of relevant plans for

maintenance, tests, shut-down, temporary periods of

decreased/increased intake or deliveries and the time and

duration for such events, as soon as such information is available.

The Carrier shall inform the Shipper of programmes for planned

maintenance, shut-downs, tests and any other activities related to

the Main Pipeline Network which could affect the Intake Point

availability and/or the Delivery Point availability or otherwise

influence delivery Shipper’s product.

Nomination and Scheduling

Shippers desiring to inject Product shall furnish Nominations and receive,

after Carrier completed Scheduling, Operations Notices for use of

the Shippers Entitled Capacity according to the process, criteria

and method described in the SHIPPER MANUAL, Section 7,

Nomination and Scheduling.

The scheduled time and location for Product Intake and Delivery will be

determined by Carrier's transportation and Delivery obligations to

its Shippers and by the necessity of economical use and efficient

operation of Carrier's facilities.

Carrier will assume no liability for its inability to maintain schedules or

comply with Shipper's Delivery requests when caused by

operational or scheduling problems, excess demand, delays and

other problems encountered in pipeline operations.

Product will be accepted for Intake during the Nominated Intake Cycle

subject to the successful scheduling of the Nomination.

The scheduled lead time between Intake and Delivery could be up to 21

days.

The Carrier will determine the number of scheduled Deliveries per

Nomination (Supplier, Product, Delivery Point, Consignee, Cycle),

unless otherwise agreed the standard will be one Delivery per

Cycle.

ANNEXURE A



Carrier may schedule Product to be delivered any time during the

Delivery Cycle and the interval between deliveries will not

necessarily be 7 days.

Scheduling of an Intake of Product from Accumulator tanks will be

subject to rules in Section 13, Minimum Order and Batch Size.

Product in the MPP Pipeline will be fungible as stated in Section 19,

Product Specifications. Carrier may substitute and deliver Product

of the same specification as the Product shipped with product

from different Sources.

1.1 Nomination and Scheduling Sequence of Events

1) Consignees shall enter 3 months Indicative Orders forecast on the

Carrier’s ERP Portal.

2) Firm Monthly Orders are entered by the 25th of the month before

Intake takes place. Suppliers and Shippers shall review these orders to

verify that is within the volumes agreed between Consignee, Shipper

and Supplier.**

3) The Consignee edits the Firm Weekly Orders on a Tuesday and

submits before 14:00 for the following week’s Intakes.*

4) If the Consignee is not the same Party as the Shipper or Supplier the

Consignee must submit the Nominations before 12:00 on a Tuesday,

Shipper should then check the Nominations and submit to the Carrier

before 14:00 on the Tuesday.*

5) The Carrier checks the Nomination against allocated and available

capacity.

6) The SAP Portal does not allow users to enter Nomination Volumes

greater than their Entitled Capacity. If Shipper’s total of the

submitted Nomination volumes is equal to the Shippers entitled

capacity the Carrier’s will inform the Shippers if additional capacity is

available. The Shipper will be allowed, if the Carrier increases the

Entitled Capacity setting in the SAP Portal temporarily, to increase the

Nomination volume if agreed with the Carrier.

7) If Shipper’s total of the submitted Nomination volume is less than

Shipper’s Entitled Capacity, the available capacity will be offered to

other Shippers.

8) Only Consignees will be allowed enter Nominations on the SAP Portal,

Consignors/Shippers and Suppliers can approve submitted

Nominations.

ANNEXURE A



9) The Carrier will schedule the Intake to meet nominated demand.

Scheduling for Intakes during the following week will be completed

by close of business on the Thursday.*

10) After the weekly scheduling is completed on the Thursday an

Operations Notice is generated and distributed to Shippers and

Intake and Delivery Point operating staff. The Operations Notice

contains scheduled Intakes and Deliveries information for the next 10

days until the end of the next Cycle.

11) Training on interpretation of the Operations Notice including slug

numbers will be provided on acceptance of new Shippers.

12) The Carrier will issue updated daily Operations Notices on Mondays,

Tuesdays and Fridays after schedules have been updated.

* Cut of times for submission of monthly and weekly Nominations specified

above are relevant for normal working weeks, Carrier may inform the Shipper

of changes to these dates for a specific cycle if there are events such as

public holidays that influence the normal working days of a week.

* * The Supplier in the SAP Portal is the Party that will be instructed to

physically inject product .i.e. Back to back supply arrangements are not

accommodated in the SAP Portal.

1.2 Criteria for Acceptance of Nominations

1) Minimum Order Size

a) See Section 13

2) Nomination Submission On-Time

a) Unless otherwise specified by the Carrier, weekly Nominations

agreed by Shippers and Suppliers, should be submitted before 14:00

on Tuesdays of the Cycle prior to the Cycle that the Product is

required to be injected into the Main Pipeline.

3) Valid Intake Point and Delivery Point

a) The Intake Point and Delivery Point should be on a valid

schedulable route. See Section 6.

4) Within Agreed Capacity Entitlement Limits

ANNEXURE A



a) A valid Agreement should be in place with the Carrier and

nominated volumes should be within the agreed limits.

5) Ability to Receive Deliveries

a) Delivery facilities should have sufficient tank capacity to take the

Delivery in one Slug.

6) Shipper Should Have Clearance from Finance Department

1.3 Nominations Method – Carrier’s Ordering Partal Interface

1.3.1 All Parties shall use Carrier’s ERP Ordering Portal to enter, submit

and amend Nominations.

1.3.2 The SAP Portal can be accessed through the internet.

1.3.3 Training on the use of the Portal will be provided by the Carrier

upon acceptance of new Shippers and for new users of existing

Shippers.

1.3.4 Existing Shippers shall ensure that new users are versed in the

processes, concepts and terminology used in daily pipeline

related business before the users are sent for SAP PORTAL

training.

1.3.5 A user will be registered to use the SAP Portal after receiving the

training.

1.3.6 Users may only use their own User ID and password to log on to

the SAP Portal system.

1.3.7 Users must ensure that they have alternative/backup access to

the internet if their corporate connection or 3G connection is

down. Internet connectivity issues will not be accepted as an

excuse for late submission of Nominations.

1.3.8 If a user can access the internet but cannot access the SAP

PORTAL the Carrier must be informed immediately.

ANNEXURE A



RE-CONSIGNMENT AND AMENDMENDS TO ORDERS

In the event Shipper or its Consignee does not have adequate facilities

available to receive Products from the Main Pipeline, at the time, any Slug

or portion thereof arrives at a Delivery Point to which it is consigned and

cause the Main Pipeline flow rate to be slowed down or stopped, the

Shipper may levy a Charge as detailed in Section 27.

Re-consignment by Carrier

In the event Shipper or its Consignee does not have adequate facilities

available to receive Products from the Main Pipeline without

delay, at the time, any Slug or portion thereof arrives at a Delivery

Point to which it is consigned, Carrier may:

1) If the product cannot be delivered within 5 hours, re-consign said

Slug or any undelivered portion thereof to a Delivery Point where

facilities are available to receive it and Carrier shall not be liable for

any of the following which may occur by reason of such re-

consignment:

a) damage,

b) loss in transit,

c) or loss in storage,

d) loss in profit

2) Such Re-consignment shall have the same effect as though

requested by Shipper and Shipper shall be instructed by the Carrier

to request the amendment as per agreed procedure.

3) Shipper shall pay transportation charges from Intake Point to actual

final Delivery Points as well as any additional costs that the Carrier

incurs during the Re-consignment.

ANNEXURE A



Requested Amendment by Shipper

Provided that it is operationally feasible - Shipper may, on agreed

procedure of Amendment to Order, request to the Carrier, and

subject to operating conditions of the facilities of the Carriers,

allow a Shipper to amend:

1) Delivery Point and Nominated Volume for Delivery,

2) the Consignee designated to take Delivery of the Shippers Products.

The Carrier shall use reasonable endeavours to meet such request.

A Nomination that is submitted after the cut-off time described in

Section 7.2 shall be regarded as an Amendment.

Shipper shall request Amendment to Orders as detailed in SHIPPER

MANUAL, Section 8, and Amendment to Orders.

Service Fees for Amendments may be levied as detailed in Section 27.

1.4 Amendment to Orders Process

1) The Consignee (on behalf of the Shipper) shall request the

Amendment verbally, and send an accompanying e-mail with the

Amendment request details.

2) The Carrier will confirm verbally and by e-mail that the Amendment

cannot be accommodated or that it will be accepted once entered

into the SAP PORTAL.

3) If the Amendment involves a new line item in the SAP PORTAL for the

requested Delivery Point or Consignee, the relevant Consignee must

create the line item.

4) The Consignor/Shipper and Consignee shall release the Amendment

request, where after the Carrier will accept it if it was as agreed

verbally.

5) If the Amendments occur within the prescribed cut off time (8am-

12am – Mondays, Tuesdays and Fridays) a new Operations Notice will

be generated after the schedules were updated.

6) If Amendments occur outside the prescribed cut off times (12am-

8am – Wednesdays, Thursdays, Saturdays and Sundays) the Carrier

will inform the Facility of the Amendment to the Operations Notice.

Any Amendments should also be communicated to Facility by the

Party who requested the Amendment.

ANNEXURE B



ANNEXURE B: Operations Notice

ANNEXURE B



ANNEXURE C



ANNEXURE C: Calibration Certificate for the Transnet pipe line Bi-

Directional Prover

ANNEXURE D



ANNEXURE D: Meter Printed Receipt

ANNEXURE D



ANNEXURE E



ANNEXURE E: Application for the registration of a new Road Haulage

Vehicle, Driver or Rail Tank Car at Tarlton

ANNEXURE F



ANNEXURE F: The National Certificate in Professional Driving: Convey

Dangerous Goods

ANNEXURE G



ANNEXURE G: Contractor Employee SHE Induction Confirmation Form

ANNEXURE H



ANNEXURE H: Transport Permit, Storage, Use and Handling of Flammable

Liquids and Substances

ANNEXURE I



ANNEXURE I: Pressure Test Certificate

ANNEXURE J



ANNEXURE J: Tarlton Road Haulage Vehicle Pre-Entry Inspection

ANNEXURE K



ANNEXURE K: Standard Credit Application Form (Transnet Pipelines)

(The 16 page credit application form is attached herewith)

Capacity Allocation Mechanism for Licensed Petroleum ... TO PIPELINE FACILITIES... · Licensed...

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