COQA Information

Crude Oil Quality Association
Harry N. Giles, Director
dir.COQA@verizon.net
+1 (703) 282-2461

August, 2002
The Crude Oil Quality Association
Recent Accomplishments and Ongoing Projects

• The Light Louisiana Sweet common stream on the Capline transportation system has specifications encompassing API gravity, sulfur, vanadium and nickel, microcarbon residue and distillation points.
• A survey on crude oil quality was commissioned and received responses from companies accounting for over half of the U.S. domestic refining capacity. That survey indicated that the majority of refiners believe crude oil quality is extremely or very important to their business and will become even more so in upcoming years.
• Considerable analysis has been done on the West Texas/New Mexico Sweet and West Texas/New Mexico Sour common streams on the Basin pipeline system. Recommendations on specifications for these two crudes have been established. Again, the parameters suggested encompass much more than sulfur and gravity. These parameters are being presented to all parties in the mid-continent area to ensure widespread cooperation and acceptance.
• A position paper on water measurement was authored , widely disseminated and is now posted on coqa-inc.org
• A task force was established to facilitate implementation of best water measurement practices in the industry
• The COQA survey on the effects of additives on refining and pipeline operations found that communication between refiners, pipes, and producers can mitigate many problems, many refineries share the same issues and that health, safety and environmental matters are of primary concern.
• The COQA provides ongoing forum for producer/refiner issues such as the use of methanol as a hydrate inhibitor in crude oil production
• Basin Pipeline has instituted gravity and sulfur specifications, using the COQA as a forum for support and acceptance
• The COQA is actively pursuing support form basin connecting carriers for implementation of those specifications throughout the entire Mid-Continent system.
• The COQA is garnering advocates for expanded parameters on the Basin system.
• The COQA disbanded its Crude Oil Round Robin after three successful years. Participants were urged to continue crude quality control with the ASTM CrossCheck, established in September, 2000.
• coqa-inc.org contains a full membership list, index of prior discussions, historical minutes, up to date information on upcoming meetings and our mission statement. There is also a methodology to post current quality questions and issues.
• We established a forum to discuss crude oil quality and the necessity of contractually requiring specifications.

September, 2001
Crude Oil Quality Association
Recent Accomplishments and Ongoing Projects

• Position paper on water measurement
• Established a task force to facilitate implementation of best water measurement practices in the industry
• Survey on the effects of additives on refining and pipeline operations
• Provided ongoing forum for the use of methanol as a hydrate inhibitor in crude oil production
• Member companies have established an in-line methanol analyzer currently in use on the Capline system
• Basin Pipeline has instituted gravity and sulfur specifications, using the COQA as a forum for support and acceptance
• The COQA is still actively pursuing support for expanded parameters on the Basin system
• The COQA disbanded its Crude Oil Round Robin after three successful years. Participants were urged to continue crude quality control with the ASTM Cross Check, established in September, 2000.
• coqa-inc.org contains a full membership list, index of prior discussions, historical minutes, up to date information on upcoming meetings and our mission statement.

April, 1999
Crude Oil Quality Association
Five Year Review

The Crude Oil Quality Association has played an active role in maintaining the integrity of the domestic crude oil supply for five years now. We have 75 member companies representing all areas of the oil industry including refiners, pipelines, supporting entities such as laboratories and inspectors, and other industry organizations. Many of our pipeline members are active, committed participants proving that awareness of quality concerns has spread well beyond the refinery gate. We meet approximately three times per year to exchange ideas and pass along quality information.

Our Mission Statement:

The Crude Oil Quality Association (COQA) is dedicated to the belief that maintaining the integrity and consistency of the refining characteristics of crude oil streams is of importance to all parties involved in crude oil activity, from production locations to the refinery. The COQA believes the commonly used industry standards of gravity and sulfur do not adequately define crude oil quality, and should be expanded to include other characteristics. The COQA is opposed to the alteration of crude oil streams, such as through the injection of processed gas liquids, without the knowledge and consent of the parties involved.

To promote these beliefs, the COQA will strive to:

• Communicate our beliefs to the oil industry at large;
• Create and sponsor forums for open communications and the sharing of information and ideas to better educate the crude oil industry;
• Be pro-active in the advancement of our beliefs with all areas for the crude oil arena, including production, transportation, trading, and refining sectors;
• Improve the overall quality of crude streams through the promotion of crude quality programs on common carrier transportation systems; and
• Be closely involved with various industry associations to further promote our beliefs.

The COQA has sponsored several successful endeavors in keeping with our Mission Statement:

• The Light Louisiana Sweet common stream on the Capline transportation system has specifications encompassing API gravity, sulfur, vanadium and nickel, microcarbon residue and distillation points. To the best of our knowledge, this is the first time common stream crude oil specifications have ever embraced parameters in addition to sulfur and gravity. An enforcement policy is in place to ensure the LLS specifications are met.
• Considerable analysis has been done on the West Texas/New Mexico Sweet and West Texas/New Mexico Sour common streams on the Basin pipeline system. Recommendations on specifications for these two crudes have been established. Again, the parameters suggested encompass much more than sulfur and gravity. These parameters are being presented to all parties in the mid-continent area to ensure widespread cooperation and acceptance.
• A Laboratory Round Robin for crude oil was established under the auspices of the COQA and attracts over 40 responders each quarter. The Round Robin Subcommittee provides a forum for assessing new technology.
• A Water Measurement Discussion Group was initiated to explore issues such as differing test methodologies and varying test accuracy. This discussion group is working on a position paper for our members that will outline the test methods and evaluate the ramifications of each.
• A survey on crude oil quality was commissioned and received responses from companies accounting for over half of the U.S. domestic refining capacity. That survey indicated that the majority of refiners believe crude oil quality is extremely or very important to their business and will become even more so in the next five years.

Future Plans:

• We have lined up speakers to address the general group on desalting of crude oil and the importance of crude oil quality to coke production.
• Our Mid-continent subcommittee continues to move forward on the proposed West Texas/New Mexico Sweet and Sour common stream specifications.
• The COQA supports the shippers and carriers implementing the LLS specification process.
• We will initiate a forum on foreign crude oil cargoes to discuss issues such as water and organic chlorides.
• We are considering expanding our membership into other geographic areas (California, the Rocky Mountains, South America) to possibly study other common stream crude oils.

1. Procedural
   
1. Openness in participation with no barriers to participation, i.e. include as many affected parties as possible and do not establish rules that exclude particular groups.
1. Timely and adequate notice of the initiation of and various steps in the development of the standard with detailed agendas for each meeting.
2. A balance of interest not dominated by a single category, i.e. give all relevant issues due consideration and do not allow any particular one or subset to dominate the proceedings.
3. Interest categories should be clearly and fairly defined, i.e. do not exclude any relevant issues from deliberations by framing them too narrowly.
4. Careful consideration of the views and objections, with all properly addressed or answered.
5. Unresolved objections should be reported to other members of developing group.
6. Careful records should be kept, including meeting agendas and minutes which are reviewed by Secretary and attending legal counsel, for clarity , completeness and accuracy.
7. Meetings should, where appropriate, be attended by legal counsel. They should stick to the agenda and there should be no informal "rump" sessions.
8. Never discuss the following at meetings:

1. Price or any elements relating to price or pricing policy, such as costs or discounts.
2. Sales or production quotas, territories, allocations, customers, or market shares.
3. Statistics, inventories or marketing methods or strategies of identified individual companies.
4. Discussion of particular competitors or customers or which endorse or disparage products or services or any particular company.
5. Topics having particular commercial implications, including specific liabilities, warranties, guarantees or particular terms and conditions of sales, including credit, shipping and transportation arrangements.
6. Anything dealing with "arm-twisting" or excluding or controlling competition or competitors.

B. Substantive

1. Purpose of standard must be legitimate, reasonable and clearly defined.
2. Can reasonably be met by various segments of the industry and should be generally acceptable to users.
3. Written, if possible, in the broadest terms to encourage innovation.
4. Written so as not to mislead users of the standard.
5. Test measures should be adequate to measure the characteristics required of the standard.
6. Should not require use of a patent unless the patent is available on a nondiscriminatory basis.
7. Should be based on technical and engineering considerations and avoid as much a possible business relationships between buyers and sellers.