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Summary
Crude Oil Quality Association
Mid-Continent Subcommittee
Houston, TX
May 31, 2001

The meeting agenda was distributed to those in attendance.

Data to Date – The summary report finalized in May of 2001 has been distributed to all members of the original subcommittee.  Selected highlights will be available on coqa-inc.org.

Pipeline Operations – Ms Patti Edens of Equilon Pipeline updated the group on Basin Pipeline.  A memo was sent out on May 21 to all connecting carriers indicating that the new sulfur specification on Basin will be 0.4%. This change is necessary in order for Basin to meet the 0.42% NYMEX requirement at Cushing.  So far, there has been little feedback (the deadline for comments is June 30) and Equilon Pipeline does not expect difficulties with the new specification which is planned to take effect on August 1.  Equilon Pipeline has recently completed pigging the first half of the line with the remainder scheduled to be pigged next year.  Patti also mentioned the TOSCO fire which shut down Basin for about 180 hours.  The pipeline is currently well underway with catch-up and no additional problems are foreseen.  

Pipeline Summit Status – At the last meeting, Aaron Dillard of Conoco shared a draft communication on crude specifications.  At the time, it was planned that the communication would be sent to all shippers requesting their support of our efforts to gain additional specifications on the mid-continent pipeline system.  The letter will now be rewritten and sent to the connecting carriers directly with a copy to the shippers.  It will still ask for support for the quality initiatives and request that all connecting carriers consider implementing specifications.  The letter will be sent out as a COQA initiative with a list of supporters, i.e. the subcommittee members, attached.

NYMEX Specifications at Midland – Aaron Dillard shared the proposed contract terms for the new NYMEX crudes.  ENYMEX is scheduled to be on line by August.  A few concerns were raised.  The West Texas Sour sulfur limit is too high in the proposed NYMEX specs.  NYMEX is proposing a 2.5% limit, out studies indicate 2.1% and Arco’s recommendation is 2.2%.  The sulfur specification of the sweet grade is also too high; at 0.42% at Midland, it will be difficult to reach Cushing at 0.42%.  A limit of 0.4% (Equilon’s current recommendation) would be more appropriate.  Aaron will contact NYMEX about these two issues.

The question on stating a specific test method number rather than "accepted ASTM standard” was raised.  In some cases, such as changing the outdated Saybolt Universal Seconds test for viscosity to Kinematic viscosity, the answer is obvious.  In other tests, a specific method is not always clearly best and more discussion will be necessary before “ASTM standard” can be properly defined.

Harry Giles, COQA Facilitator