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Summary
The meeting agenda was distributed to those in attendance. Update on Basin Project and Path Forward - Aaron Dillard of Conoco of presented a table of possible parameters for the Domestic Sweet grade on the Basin Pipeline system. Data has been collected for two years and a footprint could be established. API and sulfur were set at the current Basin Pipeline specifications. Other parameters for which a footprint has been set at this time are metals, MCRT, and distillation points. In general the limits were set at plus or minus two standard deviations with a check for reasonableness applied (to be certain no one area was adversely affected). This is the same formula applied by the LLS program on Capline, which was successfully implemented last October. Aaron presented a similar table of recommended standards West Texas Sour common stream. Currently there are no specifications at all for this stream. Comments from all the attendant paying members of the Basin Subcommittee were actively solicited. There were no adverse reactions to the limits as proposed or to the methodology employed. It was noted, however, that recently samples have not been received in the correct numbers at the contract lab. This is most likely due to the new federal shipping regulations and the problem is being addressed. When samples are again received regularly, the standard deviations can be recalculated and changes made to the proposed standards as necessary. During the discussion, Pat Quinn of Farmland introduced the issue of Nitrogen testing. All agreed that Nitrogen should be immediately incorporated into the testing battery. Also, ITS Caleb Brett will do historical testing for Nitrogen on all samples in retain, about 60 days worth. The recommendation as presented by Aaron received approval from the Basin Subcommittee. The next step will be presentation to the affected pipelines. Everyone agreed that the proposed standards should be presented not only to Equilon Pipeline (the operators of the Basin system) but also to all connecting carriers and terminals in the Cushing area. This would include Arco, Plains, and Amoco. NYMEX should also be approached due to their involvement in the Cushing area. The carriers will be contacted in the near future. Nitrogen cannot be a part of the initial proposal as there is not enough data. The pipelines will be notified of the intent to add that parameter, but in order to move forward quickly, we won’t wait for Nitrogen numbers. Super Sweet will also not be a part of the initial proposal due to lack of data. That stream has been incorporated into the testing program for possible footprinting at a future date. Update on Basin Pipeline Specifications - Bob Goodmark of Equilon Pipeline discussed the inputs into Basin Pipeline and how the gravity and sulfur fit the Domestic Sweet and Super Sweet specifications. Enforcement proceedings have not yet begun; Equilon is just collecting data at this time. However, even though official notices of violations are not being processed, verbal discussions have ensued with the input parties. Equilon has made a few changes in operations to assist in meeting the specifications. A 50MB minimum batch size will be enforced to ensure a representative composite sample. All batches are being sampled; sulfur and gravity are tested onsite at each appropriate location. A question was asked to Bob about the Capline LLS program, i.e. how is the funding now being handled. Bob noted that the incremental costs of sampling and testing are small enough to be absorbed by the current operator’s fee. That may be an option on the Basin system, long term.
Submitted by Harry Giles COQA Facilitator (216) 521-9213
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