The subcommittee identified the following parameters as critical to objective monitoring of crude oil quality and the identification of inappropriate blending.

ASTM D5307 High Temp Simulated Distillation 20% point   (ºF)
ASTM D5307 High Temp Simulated Distillation 50% point   (ºF)
ASTM D5307 High Temp Simulated Distillation 1020 ºF+    (volume%)
ASTM D664 Acid Number                                                 (mg KOH/g)      
ASTM D287 API Gravity                                                   (ºAPI)
ASTM D2622 (or alternate) Wt% Sulfur                            (wt %)
Trace Metal Analysis – Nickel (Ni) and Vanadium (V)         (ppm wt%)

The group commented:

• Shell attempted this type of additional requirement years ago, but dropped the program because no one else followed suit.
• This will only succeed if all of the COQA members collaboratively support the mandate and communicate this to their suppliers/service providers.
• The incentives to add additional testing beyond traditional sulfur and gravity would eventually result in a discount for a lack there of.
• Controlling the inappropriate blending will only be effective if economic impact was the incentive.  No need for a governing body for oversight.
• Harry Giles would consider presenting the DTCS initiative to the NPRA.
• It is not possible to set the penalty economics, but the group can set the typical penalty points.  For example, an Acid Number exceeding a specific value would prompt an economic penalty to be set by each purchaser individually.

Action Items:

• Identify the pipeline service providers involved with the scoped domestic trading centers. (Harry Giles and John Maurer)
• Identify the contacts associated with these providers (Harry Giles and John Maurer)
• Formally request they attend the next COQA-DTCS meeting to present or comment on the issues. (Tish Marshall )
• Collaborative identification of mandated of testing parameter penalty points (subcommittee collaboration via E-mail)

A summary of the Basin Subcommittee findings from 2000 is attached.  Aaron Dillard of ConocoPhillips will present this summary and take questions at the next COQA Domestic Trading Center Subcommittee meeting, to be held September 29 in Houston .