Directive 17

Measurement Requirements for Upstream Oil and Gas Operations

Recent changes have been implimented to the standard of accuracy regulations with respect to the upstream oil and gas measurement systems in Alberta from the ERCB.
 
Lambda Measurement Solutions Ltd. can assist you in determining if you are in compliance and if not make recommendations and provide solutions to ensure you meet the new regulatory directive compliance.
 
Directive017 ERCB link
 

CSOX

CSOX compliance means that corporate governance practices resulting from law, regulation, governance bodies and industry best practices (due diligence) are being followed.

From a measurement perspective , if your company is terminalling, pipelining, railing loading, or trucking in the unrefined products (crude oil, condensate, tar sands),  industry best practices would represent your corporation following API (American Petroeum Institute) and ASTM (American Society for testing and materials) qualitatative (sulfur, RVP, TAN etc.) and volumetric measurment procedures and standards.

If your company is truck loading, refined products (diesel fuel, diesel oil products, gasoline, fuel additives, Propane ,Butane etc.) that are sold to a consumer, these would fall under Measurement Canada volumetric measurement guidelines (Weights and Measures Act) in Canada.

This includes proving of meters and calibration of related temperature and pressure instrumentation, densitometers, viscometers, tank guaging electronics or any other device that is used in the determination of the corrected standard volume of the product being stored or transported for trade, tendered or sale.

In many cases, particularly the in the unrefined product category the legislated period for calibration and proving is much less than would be expected as reasonable in terms of an industry best practice in many cases

Reducing significant costs associated with substandard measurement systems and processes will increase your competitive edge and profit margin by increasing your revenue flow through to your bottom line and share holders.

Lambda Measurement Solutions Ltd. can help you determine what this regualtory expectation should be depending on the product you are handling and the volumes that are being transacted.

 Update to CSOX

In August 2008 the Canadian Securities Administrators (‘CSA”) issued its final rule for CEO and CFO Certification of Disclosure in Issuers' Annual and Interim Filings, the related forms and companion policy. Changes from the April 2008 release include the following:

1. The final rule is effective for periods ending on or after December 15, 2008.
2. The CEO and CFO must certify that they have evaluated the effectiveness of the issuer’s ICFR and disclose in the annual MD&A their conclusions about the effectiveness of ICFR at the financial year end.
3. MD&A disclosure is require for each material weakness; issuers do not have to remediate material weaknesses but must disclose any plans or actions already taken to do so.
4. The issuer is required to use a control framework when designing the issuer’s ICFR.
5. ICFR refers to "internal controls over finanacial reporting" and represents the due diligence on the behalf of the CEO and CFO to ensure that the financial data, in this case volumetric and quality assurance data is accurate and is representative of actual physical properties as deemed by industry standards (API, ASTM, Measurement Canada, Etc.)

Canadian securities Administration

Compliance central NI 52-109 compliance reference

Alberta Securities 52-109 CP companion policy