SAEP-55

Previous Issue: New Next Planned Update: 21 August 2019

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Primary contact: Al-Maatoug, Maatoug Abdullah on +966-13-8801377

Backup contact: Escobar, Juan David on +966-13-8801375

Copyright©Saudi Aramco 2014. All rights reserved.

Engineering Procedure

SAEP-55 21 August 2014

Gas Custody Measurement Claims Handling Requirements

Document Responsibility: Custody Measurement Standards Committee

Saudi Aramco DeskTop Standards

Table of Contents

1 Scope............................................................. 2

2 Conflicts and Deviations................................. 2

3 Applicable Documents.................................... 2

4 Definitions and Acronyms............................... 3

5 Instructions……………….…………………….. 4

6 Responsibilities............................................... 4

7 Activity Matrix.................................................. 7 Attachment I – Gas Custody Claim Screening/ Accepting Form (Form 1)…………………...… 8

Attachment II – Gas Custody Claim Investigation Checklist (Form 2)……………. 10

Attachment III – Claim Tracking Sheet……...….. 12

Document Responsibility: Custody Measurement Standards Committee SAEP-55

Issue Date: 21 August 2014

Next Planned Update: 21 August 2019 Gas Custody Measurement Claims Handling Requirements

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1 Scope

This procedure establishes the instructions and responsibilities for handling claims

received from gas custody customers against Saudi Aramco’s metering systems.

Organizations for which responsibilities are specified include, but are not limited to:

Domestic Sales & Logistics Department (DS&LD)

Process & Control Systems Department (P&CSD)

Proponent Organization

Oil Supply Planning & Scheduling Department (OSPAS)

2 Conflicts and Deviations

2.1 Any conflicts between this procedure and other applicable Saudi Aramco

Engineering Standards (SAESs), Materials System Specifications (SAMSSs),

Standard Drawings (SASDs), or industry standards, codes, and forms shall be

resolved in writing by the Manager, Process & Control Systems Department of

Saudi Aramco, Dhahran.

2.2 Direct all requests to deviate from this procedure in writing in accordance with

SAEP-302 to the Manager, Process & Control Systems Department of Saudi

Aramco, Dhahran.

2.3 Direct all requests for interpretation of this procedure in writing to the Chairman,

Custody Measurement Standards Committee for resolution. The Chairman,

Custody Measurement Standards Committee shall be solely responsible for

determining whether a proposed request meets the requirements of this procedure.

3 Applicable Documents

The procedures covered by this document shall comply with the latest edition of the

references listed below, unless otherwise noted:

Saudi Aramco Reference

Saudi Aramco Engineering Procedure

SAEP-302 Instructions for Obtaining a Waiver of a Mandatory

Saudi Aramco Engineering Requirement

https://standards.aramco.com.sa/public/StandardDocInfo.aspx?AbbCode=SAEP-302

https://standards.aramco.com.sa/public/StandardDocInfo.aspx?AbbCode=SAEP-302




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4 Definitions and Acronyms

4.1 Definitions

Claim: A measurement claim is recognized when a gas custody customer

properly files an objection against Saudi Aramco’s billing figures.

Commentary Note:

The term properly refers to the claim being in compliance with acceptance requirements developed under this procedure.

Custody Transfer Measurement: A specialized form of measurement that

provides quantity and quality information used for the physical and fiscal

documentation of a change in ownership and/or responsibility of hydrocarbon

commodities. This includes measurement of hydrocarbon liquid movements

(deliveries or receipts) between Saudi Aramco and its customers, suppliers, joint

ventures and transport contractors including VELA ships.

Customer: The party that takes ownership or responsibility of a hydrocarbon

commodity from Saudi Aramco.

SAP: The Saudi Aramco main system for enterprise resource management.

Third Party Inspection Agency: An independent inspection agency whose

function is to conduct an unbiased inspection of certain systems, equipment,

materials, etc., against a set of international standards, guidelines or procedures.

For purposes of this SAEP, the Third Party Inspector has particular knowledge

of and experience with industry custody measurement standards and procedures.

4.2 Abbreviations

API American Petroleum Institute

CMU Custody Measurement Unit of Process and Control Systems

Department

DS&LD Domestic Sales and Logistics Department

DSAD Domestic Sales Accounting Division

DSBU Domestic Sales Billing Unit

OAD Operation Accounting Department

OSPAS Oil Supply Planning and Scheduling Department

MMBTU Million British Thermal Units

P&CSD Process and Control Systems Department

SAEP Saudi Aramco Engineering Procedure




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5 Instructions

The claim handling process shall include the following key phases:

1) Reception and Acceptance

2) Investigation and Evaluation

3) Settlement and Reporting

6 Responsibilities

6.1 General

This section lists the responsibilities of all organizations involved in the

different phases. The activity matrix in Section 7 of this procedure provides a

sequenced guideline for executing the actions required for the above three

phases along with a summary of the responsibilities detailed in this section.

All organizations involved shall fill the claim tracking sheet (Attachment III).

6.2 Domestic Sales and Logistics Department (DS&LD)

a) Verify if an officially signed supply agreement with the customer exists

and advise OSPAS accordingly.

b) If such an agreement exists, verify if the claim was filed in compliance

with agreement’s claim filing requirements.

c) If both a signed agreement exists and claim filing requirements are met,

inform OSPAS to accept the claim.

d) If the filing requirements in the signed agreement are not met, notify

OSPAS to reject the claim.

e) If no signed agreement exists and no other instructions prevail, notify

OSPAS to accept the claim.

f) Handle and resolve (none-technical) logistic/agreement-related claims

once received from OSPAS.

g) If the customer rejects his claim’s final resolution, notify him that he may

pursue the arbitration terms agreed upon on the mutually-signed supply

agreement.

h) If there is no signed agreement or if DS&LD sees a need, ask OSPAS to

request the customer to open his metering system for assessment by

technical staff from Saudi Aramco organizations with responsibilities

defined in this document.




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6.3 Operations Accounting Department (OAD)

a) Receive adjustment details, with the exact quantity in MMBTU, from the

proponent organization.

b) Create a Credit Note for bill adjustment and send it to the customer.

6.4 Oil Supply Planning and Scheduling Department (OSPAS)

a) Act as the focal point of contact on all measurement claims by the

customers.

b) Require the customer to fill Form 1 (see Attachment I).

c) Send the completed Form 1 to DS&LD to see if the claim contractually

qualifies or not.

d) Inform the customer on acceptance or rejection.

e) Forward logistic/agreement-related claims to DS&LD for action.

f) Forward technical quantity and/or quality claims to the proponent

organization for investigation and action along with Form 1 completed.

g) Submit the claim to the proponent’s Operations Superintendent.

h) Follow up with proponent organization and update the customer on the

status of resolution of his claim on a monthly basis.

i) If the customer rejects his claim’s final resolution, consult with DS&LD

on the post-resolution action.

j) If needed, coordinate with the customer the logistics of the field visit of the

investigation team to execute checks of Form 2 (see Attachment II) on his

system.

k) If the customer denies Saudi Aramco team access to its metering system,

notify him that no further action will be taken by Saudi Aramco and his

claim and claim is considered closed.

l) If informed by DS&LD that the customer elects to pursue the arbitration

terms, coordinate actions by the technical staff from concerned

organizations as needed.

6.5 Custody Measurement Unit of Process & Control Systems Department (CMU)

Provide consultancy specialized technical support to all organizations involved

on as-needed basis.




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6.6 Proponent Organization

a) Operations Superintendents will forward claims received from OSPAS to

the proponent’s unit leader responsible for the investigation.

b) Execute, as a minimum, all the checks highlighted in the claim

investigation checklist, Form 2.

c) Request CMU’s assistance only in specific non-routine specialized

consultancies on as-needed basis.

d) Depending on the result of executing the checklist and the follow-up

actions deemed needed, decide the claim resolution action. The action

may either be identifying fault(s) that justify accepting the claim or

absence of such faults leading to rejecting the claim.

e) Channel all communications with the customer through OSPAS, unless

delegated otherwise by OSPAS.

f) Notify OSPAS with the result and copy CMU for information purposes.

g) Highlight the action mandated out of the investigation; accept/reject along

with applicable conditions and/or limitations.

h) If decided to accept the claim, use a technically-defensible method to re-

calculate the billing figures.

i) If bill adjustment is deemed necessary, forward adjustment details, with

the exact quantity in MMBTU, to Operations Accounting Department

(OAD)/DSAD/DSBU to create a Credit Order.

j) If rejection of the claim is decided, notify OSPAS to inform the customer

accordingly.

7 Activity Matrix

The following matrix summarizes the general sequence of activities and corresponding

responsible organizations for claim investigation. Detailed requirements for each

organization are specified in Section 6 above.

Step Activity/Work Item Perform Review

1 Act as the focal point of contact with the customer. OSPAS

2 Get Form 1 filled by the customer. OSPAS

3 Check with DS&LD if the claim qualifies contractually or not.

OSPAS DS&LD




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Step Activity/Work Item Perform Review

4 Based on DS&LD input and customer response in Form 1, decide to accept or reject the claim.

OSPAS DS&LD

5 Refer logistic/agreement-related claims to DS&LD and technical claims to the Proponent.

OSPAS DS&LD Proponent

6 Address the accepted technical claim to Operations Superintendent.

OSPAS Proponent

7 Execute all the checks of Form 2. Proponent

8 Request consultancy on specific specialized issues from CMU.

Proponent CMU

9 Notify OSPAS with the findings of the investigation Proponent CMU(1)

10 Highlight the final action on the claim to OSPAS; accept or reject.

Proponent

11 If the claim is accepted, define a technically defensible method to re-calculate the billing figures.

Proponent

12

If bill adjustment is deemed necessary, forward adjustment details, with the exact quantity in MMBTU, to OAD/DSAD/DSBU to create a Credit Order.

Proponent

13 Create a Credit Note and send it to the customer. OAD/DSAD/DSBU

14 If the claim is rejected, inform OSPAS to notify the customer accordingly.

Proponent

15 If customer rejects the claim resolution, consult with DS&LD.

OSPAS DS&LD

16 If there is a signed/valid agreement, advise the customer to pursue the arbitration terms.

DS&LD

17 If there is no signed agreement or if Proponent requests, ask OSPAS to request the customer to open his metering system for assessment.

DS&LD OSPAS

18 Coordinate with the customer a field visit by the investigation team.

OSPAS Proponent CMU DS&LD

19 Conduct the checks of Form 2 on the customer’s system.

Proponent OSPAS CMU DS&LD

20 If customer denies access to his metering system, notify him his claim is closed.


21 If customer rejects closing, coordinate action by concerned technical staff.


22 Fill the claim tracking sheet (Attachment III) ALL

Note: (1)

CMU will be copied for information purpose.

Revision Summary

21 August 2014 New Saudi Aramco Engineering Procedure.




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Attachment I – Form 1 (Page 1) - Gas Custody Claim Screening/Accepting Form

No. Category Description

1.

Cu

sto

me

r D

ata

Customer

Name

2. Plant No.

3. Customer Representative

4. E-mail Address

5. Filing Date

6.

Cla

im D

eta

ils

Commodity Sales Gas Ethane

7. Claim Type Quantity (MMSCF)

Quality (MMBTU)

Logistic/ Contractual

8. Claim Period Start Date

9. Claim Period End Date

10. MMBTU as Measured by Customer

11. MMBTU as Billed by Saudi

Aramco

12. MMSCF as measured by Customer

13. MMSCF as reported by Saudi Aramco

14.

MMBTU % Difference

15. MMSCF % Difference

16.

Dollar amount of Claim




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Attachment I - Form 1 (Page 2) - Gas Custody Claim Screening/Accepting Form

No. Category Description

17.

Cu

sto

me

r M

ea

su

rem

en

t S

yste

m

Metering

System Type

Orifice USM Coriolis Others

18. Preventive

Maintenance

Frequency

Monthly Quarterly Semi-Annual Annual

19. Date of Last PM conducted on the metering system

20. Quality System

Type

Spectrog-

raphy

Chroma-

tography

Sampler Calori-

meter

21. Preventive

Maintenance Frequency

Monthly Quarterly Semi-

Annual

Annual

22. Date of Last PM conducted on the quality system

Yes No

23. Metering and quality systems to custody measurement accuracies?

24.

Cu

sto

me

r Fig

ure

s

Beginning by the date the claim initiates, complete the following information with

customer’s numbers

Date

Volume

(MMSCF)

Heat Rate

(BTU/SCF)

Total BTU

(MMBTU)

Yes No

25.

Is the customer willing to allow Saudi Aramco to

inspect its quantity and quality measurement systems if needed?




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Attachment II – Form 2 (Page 1) - Gas Custody Claim Investigation Checklist

No Component

Checked Description Yes NO Remarks

1

Da

ta

En

try

Were all tickets data entered correctly

in SAP?

2 In stations with online samplers, was

the gas composition updated weekly?

3

Tra

nsm

itte

rs

Are one year records for transmitters’ calibration available?

4 Do Calibration records show deficiencies on any transmitter?

5 Do records show DP transmitter exceeding max. range or frozen?

6 Purge the impulse lines. Any significant black powder released?

7 Re-calibrate the transmitters’ full

loops. Any change in reported volume?

8 In summary, is a transmitters’ fault

identified to be the cause of the claim?

9

Ori

fice

Pla

te

Did PM records indicate that the orifice

plate was inspected?

10 Did PM records indicate any damage in

the orifice plate?

11 If possible, lift the plate for inspection.

12 Any significant damage and/or black powder?

13 Was the plate mounted backwards?

14 Are the orifice bore sizes; stamped

measured and configured consistent?

15 Is the beta ratio ( between 0.2 and

0.6? (

16 In summary, is an orifice plate fault

identified to be the cause of the claim?




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Attachment II - Form 2 (Page 2) - Gas Custody Claim Investigation Checklist

No Component

Checked Description Yes NO Remarks

17

Ult

raso

nic

Me

ters

Does the alarm report history indicate

a malfunctioning in the claim period?

18 Does the Diagnosis report show any

of the health check parameters exceeding manufacturer’s limits?

19

Flo

w

Co

mp

ute

r Is configuration data verified to be

accurate, especially orifice & pipe ID.

20 Are ticket calculations reproducible

against standard software?

21

Re

pre

se

nta

tive

Sa

mp

le

/G

C

Is normal operation verified? No leak,

damage or failure in claim period?

22 Does the sampler’s cylinder fill

normally on the weekly cycle?

23 Is the GC’s calibration gas cylinder

functional & certified (not expired)?

24 Is the GC’s carrier gas cylinder

functional & certified (not expired)?

25 Do the GC calibration records reflect

any problem?

Oth

ers

26 Are there any other faults that may

be causing the discrepancy?

27

Su

mm

ary

Reviewing the outcome of all the

checks above, is the claim Justified?

28 If justified, list the numbers of the

fault sources from this checklist.

29 Is a bill adjustment needed?




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Attachment III – Claim Tracking Sheet

Received

Date Received By Signature Forwarded To Date

SAEP-55

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