ENERGY INSTITUTEHMC-4 OIL TRANSPORTATION MEASUREMENT COMMITTEE

Minutes of the Meeting of 14th and 15th May 201348th Meeting

Held at the Radisson Blu Hotel, Stavanger, NorwayHosted by Statoil

DisclaimerThis document and attachments are for information only. The EI as a body is neither responsible for the statements or opinions expressed in the documents nor does it endorse the technical views expressed or the equipment/techniques described.

PresentationsCopies of presentations marked * are available from the HMC committee page on the Energy Institute website.

Those present:

P Rooney Phillips 66 Ltd (Chair)B Nicholls BP Oil (Vice Chair)A Drewery Phillips 66 LtdJ Lopez ChevronP Monteverde ENI Trading and Shipping, RomeA Kroll ExxonMobilA Lima Galp EnergiaG Defilippo MarathonAF Harboe PetrobrasC Johnston RasGasA Alyahya Saudi AramcoA Terry ShellM Lim StatoilT Hjorteland StatoilJ Osmundsen StatoilC Mahmudov StatoilK Saleh SumedP Weinreich TALC Mahaffey Total (Atlantic)D Solewicz TotalC Laurens UnipecA Panni EBOTAD Bleser IFIAM Harrison IFIAP Harrison Consultant/Secretary

Notes 1. Speakers and Guests are listed under 4.0 below2. A detailed contact list is included as Attachment 1

1.0 WELCOME AND INTRODUCTION

Following a safety briefing Pete Rooney welcomed everyone to the meeting, reminding representatives of their anti-trust obligations.

Johan Osmundsen welcomed everyone to Stavanger on behalf of Statoil and provided some interesting information about the port.

2.0 AGENDA APPROVAL

The agenda was reviewed and approved. It was agreed that a presentation by Adam Panni regarding EBOTA would be included.

3.0 APOLOGIES

Apologies were received from:

Claudio Solis PMILucio Pappada ENISteeve Baillon TotalArthur Kay IFIA (SGS)John Spengel ShellJohn Sweeney Phillips 66Bao Lih Huang CPCSteinar Fosse NPD (see 11.0 below)

4.0 MEMBERSHIP AND GUESTS

Committee membership stands at 26 companies; 17 A committee members plus CITGO, Valero, Saudi Aramco, Sumed, Ras Gas, BG Group, Mercuria, Unipec and Koch. Koch dropped out of the A committee for 2012 but intend to rejoin and ERG have left both groups.

Efforts continue to attract new members. Contact with Petroineos is being maintained.

A welcome was extended to guest speakers from:

Statoil Marthe HoffStatoil Jingshi Ruan YangNorwegian Petroleum Directorate Halvard HedlandDopak Erik LantingaCameron-Jiskoot Jon MoreauKrohne Bart Van Deer Strap

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5.0 MINUTES OF THE LAST MEETING

5.1 ApprovalThe minutes were accepted as a true record of the meeting held in Houston on 6 th and 7th

November 2012.

5.2 Actions and Matters Arising

Committee OfficersFollowing the withdrawal from the chairmanship of Mike Wilson of ExxonMobil Pete Rooney of Phillips 66 had been confirmed as chair and Bruce Nicholls of BP as vice chair.

LNG MetrologyThe work of the VSL project had been presented in May 2011 and it was agreed that the EI should follow progress with a view to participating in development and publication of any new standards/guidance which may eventually result. It was noted that VSL were running a conference in Delft, Netherlands on 17/18 October and that representatives were planning to attend. Members with LNG interests were asked to consider participation.

ACTION MEMBERS/P HARRISON

OCIMF Inspection CompanyAssessment Following the last meeting the EI had expressed concerns over the proposed scheme and had also had sight of the self assessment pro forma. This had raised more concerns as, although the proposed work group had not had a meeting the document was clearly in a final draft state and it was made clear that opportunities for change were limited. However, following the meeting with OCIMF where further concerns were expressed, together with a willingness to work with OCIMF on specific safety issues (H2S, boarding ships, etc.) there had been no news and no meetings of the new work group had taken place.

It was noted that chairmanship of the OCIMF PTC committee had recently changed (now Bill Crabbs of P66) which may have resulted in the lack of progress. G Defilippo agreed to follow up with OCIMF contacts.

ACTION G DEFILIPPO

Terms of ReferenceNo improvement on the current committee name had been found and it was agreed to issue the revised terms of reference for ballot maintaining the current name.

ACTION P HARRISON

Other actions and matters arising are covered in the agenda below.

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6.0 * STATOIL OVERVIEW – Marthe Hoff, Statoil

(More details with presentation)

Marthe’s presentation covered Statoil’s current position and corporate strategy. The company is 67% owned by the Norwegian government.

In the upstream sector the target is to increase production to 2.5 million boe/d by 2020. This will be achieved through enhancement of recovery rates for existing North Sea facilities and further developments in the Norwegian Sea and Barents Sea together with participation in global developments including US shale, Canadian oil sands and EU gas.

The crude, liquids and products division is one of the worlds largest crude oil traders, marketing Statoil’s own equity production (providing “flow assurance”) and third party volumes totalling around 2 million bpd with a turnover of 1.5 billion NOK per day. They are also responsible for commercial operations at Mongstad/Sture and South Riding Point in the Bahamas but are no longer involved in retail outlets. The strategic direction is to build on their EU position, build value chains in North America and to grow global trading in selected markets, physical and financial.

With regard to shipping, the company owned Navion fleet has been sold to TeeKay and all vessels are now chartered, mainly long term but some spot. Shuttle tankers are on long term contracts to give maximum availability and control.

Volumes for 2012 were given as:

Crude: 714Mbbl/year – 695 voyagesEquity volumes from Norway, UK, Azerbaijan, Algeria, Angola, Libya, Brazil, Nigeria, Venezuela, US, Canada and Russia

Gas liquids: 14M tonnes/year – 914 voyagesEquity volumes from all North Sea Norway and UK, Snøhvit (Barents Sea), Kalundborg (Denmark), Algeria and Iran

Products: 15M tonnes from Statoil refineries together with 807 000 tonnes of methanol – 1536 voyages

It was noted that LNG operations are developing with one train running at Snohvit and a number of possible developments elsewhere, including Tanzania.

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7.0 ENERGY INSTITUTE REPORT – Paul Harrison

7.1 Committee OrganisationIt was noted that the HM sub committees are organised as follows:

HMC-1 Upstream HMC-2 Refineries and Downstream HMC-3 Inspection HMC-4 Transportation GTC Committee Asian Forum

7.2 Work Item Progress

HMC-1 Upstream HM70 Series Upstream Measurement Guides

o Content to be included in the revision of HM54 Management of measuremento HM75 Management guide to uncertainty to be published separately

HM8/ISO DIS 9857 Continuous Density Measuremento Revised pyknometry document in preparation – STAC funded

Training curriculumo Work with contractor progressing

HM25 Uncertaintyo Revision draft near completion

Implementation of Phase 3 of EU emissions trading regulations – updates of:o HM53 Guidelines for emissions tradingo HM54 Management of measurement o HM58 Flare gas measurementSTAC funds available for all the above

HM60 Auditing of measurement systemso Committee update in 2013

HMC-2 Refineries and Downstream Rationalisation of metering and proving standards

o HM19 Temperature measurement on loading gantries Editorial

o HM12 Design, installation and calibration of pipe provers Editorial

Review/Revisionso HM32 Guide to Hydrocarbon Management at Petroleum Marketing and

Distribution Terminals Under review

Data analysiso 2012 refinery loss (benchmarking) analysis completeo New participants welcome – next meeting set for June 13th

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HMC-3 Independent Inspection HM28, 29 and 30 Crude oil/ Products and LPG inspection procedures

o Editorial HM51/API Ch 17.11 - Procedures for bulk liquid chemical cargo inspections by

cargo inspectorso Revision in progress – EI updates with API group for review

HM55/API Ch 17.10.2 - Marine Measurement, Measurement of refrigerated and/or pressurized cargoes on board marine gas carriers - Liquefied petroleum and chemical

o Revision comments being addressed HM4 Manual Measurement of Level in Tanks

o Efforts to combine this with API 3.1A had not succeeded and a new work group has been formed to revise the document as EI guidance.

HMC – General EI-JIG 1530 Quality assurance requirements for the manufacture, storage and

distribution of aviation fuels to airportso Final comments being addressed. Publication expected later in 2013.

Trainingo Work continues on the upstream measurement training curriculum (HMC-1)

Agreements have been reached with a platform provider (IDESS) and with SGS to use their material as the basis for on-line training. It is intended to add material from others to extend the facility.

7.3 Asian ForumThe last meeting was in December 2012 with the next meeting planned for 20 th June. The main work item is HM67 – Additisation Guidelines, recently circulated for comment. Comments will be addressed at the next meeting. Hopefully the document can then be balloted.

Issues regarding bunkering remain a key issue for the group.

7.4 EI GTC CommitteeThe Model Terms for CIF/CFR sale and purchase of crude oil version had been balloted and comments were still being addressed with a view to publishing in Q3. The next work items will be FOB and CIF products contracts.

It was noted that close contact was being maintained with LEAP who are working on EU barge terms in order to standardise general clauses across all model terms.

The possibility of developing model bunker contracts following the products work had been suggested but had not so far met with much support.

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8.0 API REPORT – Prepared by Sally Goodson, API(presented by P Harrison)

The sister committee to HMC-4 in API is COMA (Committee on Measurement Accountability)Jose Lopez (Chevron Corporation) - ChairmanJuri Koern (Shell) - Vice ChairmanSally Goodson (API) – Secretary

COMA activities were reported as follow:

8.1 Standards published in 2012:

Ch 17.5 (EI HM64) Guidelines for Voyage Analysis and Cargo Reconciliation 3rd edition – published 4/12

Ch 17.9 (EI HM 49) Marine Measurement – Vessel Experience Factors 2nd edition – published 5/12

8.2 Standards under revision:

Ch 17.1 Guidelines for Marine Cargo Inspection, 6 th edition up for reaffirmation 3/2013, document currently under revision by API work group. (2 year extension granted by COPM) document currently under revision by API work group. Draft document being prepared. Ballot expected by Fall 2013.

Ch 17.6 (EI HM 66) Guidelines for Determining Fullness of Pipelines Between Vessels and Shore Tanks (2004 Rfmd 5/10)Standard balloted within API and EI under separate ballots. API ballot passed, with one negative, which was reversed. EI ballot passed with one negative, which is currently being discussed. All API and EI comments have been incorporated into standard and once EI negative is resolved, the changes will either be re-balloted to the SC or circulated for comment. Scope was changed and HS&E language added to accommodate comments from EI negative voter. Changes under review by the EI negative voter’s representative company.

Secretary’s note: EI negative has now been withdrawn. However, API consider that the extent of changes will require a second ballot. EI have not had sight of the modified document.

Ch 17.10.1 Measurement of Cargoes on Board LNG Carriers The ISO document, ISO 10976 has been published within ISO.

It was decided at the COMA Spring 2012 meeting to adopt the ISO document back to API as Chapter 17.10.1. Paperwork for adoption is being developed with ANSI and document will be balloted to COMA during May 2013.

Ch 17.10.2 Measurement of Refrigerated and /or Pressurized Cargoes on Board Marine Gas Carriers, Part 2: Liquefied Petroleum and Chemical Gases (Rfmd 10/12)

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Currently under revision by the work group.

8.3 Standards under ReviewChapter 17.12 – Procedure for Bulk Liquid Chemical Cargo Inspection by Cargo Inspectors – Due September 2013. An SRRR for the revision of Chapter 17.12 was approved at the Fall 2012 COPM net meeting. A 2 - year extension for Chapter 17.12. has been requested from COPM, expected to be approved in May 2013. A work group has been reconstituted to begin to revise the standard.

Secretary’s note: As noted above this is a joint document and the EI recommended changes have been forwarded to the API group for consideration.

Chapter 17.3 – Guidelines for Identification of the Source of Free Waters Associated with Marine Petroleum Cargo Movements (due: September 2014)

Chapter 17.4 – Method for Quantification of Small Volumes on Marine Vessels (OBQ/ROB) (due: August 2014)

Chapter 17.8 – Guidelines for Pre-Loading Inspection of Marine Vessel Cargo Tanks (due: September 2014)

Chapter 17.11 – Measurement and Sampling of Cargoes on Board Tank Vessels Using Closed/Restricted Equipment (due: May 2014) An ad-hoc group has been formed to review these standards and make a recommendation at the Fall 2013 COMA meeting regarding whether to open the documents for revision or to reaffirm.

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8.4 COPM Activities

Ethanol/Gasoline Blend VCF StudyPhase I, II and III of Lab work for determining VCF’s for Ethanol and Gasoline blends is complete and has been reviewed. Data is being analyzed and it is anticipated that Chapter 11.3.4 will be balloted in the 3rd quarter of 2013.

Mercury Thermometer Reduction Program - Partnership with the EPAPhase I of the field testing of alternatives is almost complete. Data expected to be analyzed by the Fall 2013 COPM meeting.

Phase II work group to develop testing protocols has been formed to begin to write protocol for finding alternatives to Mercury for calibration.

API 2013 Beijing Conference Fall 20133 – Tracks of Presentation and Exhibits:UpstreamDownstreamMeasurement

Liquid Measurement Training – 2 days

Date: September 9-13, 2013Location: China World Hotel – Beijing China

Conference Topics to focus on what is new in API MPMS Standards: What new technologies and technics are being written in the existing standards and what new standards are being developed.

9.0 ISO DEVELOPMENTS

It was reported at the last meeting that the API and ASTM had withdrawn from ISO activities; API citing copyright and sanctions issues, and that both bodies had relinquished their TC28 secretarial duties (delegated from ANSI).

Responsibility for the main ISO TC28 committee - Petroleum products and lubricants and ISO TC28/SC2 - Measurement of Petroleum and Related Products has been passed back to ISO who have asked for other national standards bodies to take on the work.

BSI/EI are interested in the SC2 secretariat and the EI have asked STAC to provide funding to support this role so that an application can be made. The EI review of ISO petroleum measurement documents is complete will form the basis of a work programme for TC28/SC2 when the committee reconvenes.

Secretary’s note: Since the meeting it has been confirmed that the Netherlands standards body, NEN with the support of the Brazilian body ABNT has taken over the secretariat of the main TC28 committee. Further, STAC have approved funding for the EI such that BSI/EI can now apply for the SC2 secretariat role.10.0 REPORT FROM IFIA - INSPECTOR CERTIFICATION PROGRAMME

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– David Bleser, IFIA Petroleum Committee (SGS)

David gave a brief overview of the IFIA Inspector Certification Programme.

In 2012 over 1350 candidates (90 from non IFIA memebr companies) had been examined globally and paper exams had been held in over 30 countries worldwide. On line testing had been introduced in December and 190 candidates had used this process. During the first 3 months of 2013 over 400 candidates had registered for the on line exam.

The test is currently available in English only but French, Russian and Spanish versions should be available in Q2. Language is selected when appointments are made.

The on line service should be extended to South America in Q3.

Applications are made using on line forms in the month preceding the exam period (also one month but with two periods per year). Appointments can be changed up to 5 days before the examination date. Candidates are given immediate pass/fail notification with certificates and scores received by the “branch” in the month following the exam.

Checks on internal training records are performed for 2% of IFIA member candidates and for all candidates from non IFIA members. Non member companies are confirmed as bona fide independent inspection organisations providing bulk custody transfer inspections and also asked to provide evidence of their capability to provide training in line with the requirements of the programme.

Issues which remain of concern to IFIA are H2S measurement (hopefully HM69 will help here) and indemnities for personnel boarding ships, which continue to be presented despite recent efforts and publicaiton of an IFIA bulletin on the subject.

There was a discussion regarding mandatory certification which David pointed out was not helpful as a key part of the certification process 6 months field experience working as an inspector. David recommended that clients allow the inspection company local management to select personnel for particular tasks based on their individual skills and look for an overall percentage of certified staff to be available at each location.

Sumed noted that they allow non certified inspectors to work in their terminals but that only certified personnel are permitted to sign certificates.

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11.0 * CUSTODY TRANSFER MEASUREMENTS ON THE NORWEGIAN CONTINENTAL SHELF – Halvard Hedland, Norwegian Petroleum Directorate (NPD)(More details with presentation)

Halvard began by pointing out that the NPD have a wider brief than the Norwegian sector and provide services to others who are developing regulations, in recent years East Timor, Iraq, Mozambique, S Sudan and Ghana.

For the Norwegian continental shelf the NPD audit metering stations for all producing installations including, by special arrangement those, which overlap with other authorities, export to UK, etc. This includes 12 producing installations and NPD also cover Snohvit in northern Norway.

All facilities have meters and provers and prove at every loading. Skarv has ultrasonic meters with other installations all turbines.

The metering regulations used by the NPD are very similar to those used by DECC in the UK and can be found at www.npd.no

In addition to specifying and verifying uncertainty for the fiscal systems NPD also assess management control systems, organisation and staff skills and competence, including the need for the organisation to provide advancement. It is the responsiblilty of the operators to demonstrate that they are complying.

Current uncertainty limts at 95% confidence (k=2) are:Oil metering 0,3% standard volumeGas metering 1,0% massFuel gas metering 1,5% standard volumeFlare gas metering 5,0% standard volumeLNG 0,5% energy content

Ultrasonic meters now being installed for gas systems allow uncertainty to be reduced to 0,5%.

Flow proportional samplers with mixers are used for the oil loadings, backed up by manual samples at 25/50/75% of each parcel.

Measurement data must be archived and documented errors greater than 0.02% are corrected retrospectively. In case of doubt, corrections are run over half of the maximum time during which the error could have been present.

Audit frequency depends on production volumes with the biggest producers audited twice per year. Consents are required for new systems and for system changes and operators normally begin work on these, with NPD, during the project phase. Start up, operating and maintenance procedures must be included with applications.

In discussion it waas noted that the sampling systems are not tested by water injection. Also, although the metering systems covered are used for custody transfer they are, of course, fiscal systems, hence the involvement of the NPD and Norwegian government. 12.0 * DOPAK SAMPLING SYSTEMS – Erik Lantinga, Dopak (Dovianus)

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(More details with presentation)

Erik explained that Dovianus are based in the Netherlands with their US sister company Dopak based in Houston. The company is dedicated to sampling systems and is fairly small, with 44 employees but has local representatives worldwide.

The company provides sampling solutions for liquids, gases and liquefied gases working generally from tank side taps or pipeline line sample points. The equipment is designed to be fully closed and includes fixed tank side cabinets with integrated line flushing facilities, for multiple side tap or floating arm sampling, and portable, trolley mounted systems for collecting truck or process samples. Liquid samples are typically collected using bottles with septums but other systems are provided for higher pressure operation.

Dopak do not currently have a system which would improve on tank side taps or floating arm sample tubes for initial sample collection. However they do have an insertion system for process vessels which uses a submersible pump inside a dip pipe to draw samples from the main body of theliquid in the vessel. It was felt that some variation of this system might offer a solution for shore tanks but it would be necessary to be able to draw liquid from different levels. If this could be achieved then the existing Dopka tank side equipment could provide for actual sample collection.

The issues surrounding shore tank sampling and the need to move away from having to access the tank roof were discussed and Erik agreed to consider if Dopak might be able to offer a full solution.

13.0 JOINT SAMPLING WORK GROUP – PROGRESS REPORT - Pete Rooney, Chair (P66)

Pete gave an update on the three work items in hand:

Test method sample type matrix – this lists all IP test methods and notes the sampling requirements which they call for. This matrix been completed and a basic set of standard sampling requirements which it is hoped can be applied for those methods where vapor loss, cooling, light sensitivity, etc. are an issue have been developed and passed to TMS committees for consideration.

Model sampling plans – to provide clear guidance for field sampling requirements (number, location and volumes of sample for various operations). The draft is now well developed and should be ready for ballot later in the year.

Sampling handbook – a contractor has been appointed and the draft is well developed. A second tranche of funds from STAC has been approved to complete the work in 2013.

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14.0 COMMITTEE WORK ITEM REVIEW

14.1 HM67 - Additive guidelinesThe draft was out for comments and members were asked to revert by May 24th. Comments will be addressed by the work group at the Asian Forum meeting in June and the document should be albe to go to ballot later in the year.

14.2 ISO 3171 and 3170 supplementsISO 3171It had been agreed to form a work group to develop a “supplement” to ISO 3171 to cover the topics noted above and any other issues needing revison or clarification. The following members volunteered:

Mark Jiskoot Cameron/JiskootAlan Drewery P66Arthur Kay SGSAnnette Kroll ExxonMobilArve Martinsen ProservJohn Alborough NuLabCraig Johnston RasGasMalcolm Maunder Marine Cargo ExpertsMartin Basil SOLV

J Moreau from Cameron/Jiskoot presented slides summarising issues which it is felt need to be addressed in any revision of ISO 3171. These are generally:

Clarify and expand the product rangeReview mixing requirementsClarify the uncertainty calculationsReview and amend the proving criteria

Secretary’s note: Following the meeting C Johnston has agreed to chair the group.

ISO 3170It was proposed to carry out a similar review and preparation of a supplement for the manual sampling standard. This can draw on the preparation work which was done for the abandoned joint work for API Ch 8.1. D Bleser agreed to lead the group and volunteers will be sought.

ACTION D BLESER/P HARRISON

14.3 Rail Car Cleaning GuidelineThe new work group under C Mahmudov had met immediately before the meeting and had agreed that HM50 could be used as a base for the new document or that rail cars could be included as an annex to HM50. Following discussion it was agreed that a separate document should be developed as different user groups were involved.

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14.4 HM40 Crude oil washing and heating guidelinesP Harrison advised that additional updated washing recommendations had been received such that the revision could proceed.

14.5 HM50 Product tank cleaning guidlinesFollowing review over the past months, the work group had reviewed the comments such that the document (edition 3) could be balloted shortly.

14.6 HM69 Vapor space H2S measurementDraft 6 had been circulated ahead of the meeting. Comments received were discussed and a prototype apparatus was presented for review and met with general approval with the suggesiton that a compression collar may be needed for the tube-cap penetration to prevent leakage and to hold the tube in place. It was agreed to prepare a draft for ballot.

ACTION B NICHOLLS/P HARRISON

14.7 New work items – Offshore vessel loading guidelinesFollowing discussions and presentations at previous meetings it was agreed to proceed with this new item. A chairman and work group volunteers will be sought from HMC-1, 3, and 4.

ACTION P HARRISON

15.0 WATER FINDING JIP – STATUS – Paul Harrison, EI

Those members who had already agreed to join the group had met and agreed to make a further request for additional members. This to be followed up after the meeting.

ACTION P HARRISON

16.0 * ULTRASONIC METERING FOR VESSEL DISCHARGE – Bart van der Stap, Krohne

(More details with presentation – including linearisation and proving charts)

Bart gave an overview of the Krohne organisation worldwide before describing the principles of ultrasonic flow metering and the use of a multipath meter to allow for flow profile variations.

The project at Ain Sukhna was then described in detail along with the meter skid (5 x 16” and 1x 8” US meter) and 36” prover loop solution which was chosen for the 48” import line.

Each meter stream is equiped with a plate type degasser and a tube bundle flow straightener and, although the ultrasonic meters can be corrected for viscosity changes using the measured flow profile, an on-line viscometer is used to apply Reynold’s number corrections in this case due to the wide variation in product characterisics. A densitometer is installed on the same fast loop.

In order to check that the degassers are working correctly a simple 3 beam ultrasonic gas detection ring is installed on each meter run to check the top of the pipe for gas.

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17.0 * AIN SUKHNA – CUSTODY TRANSFER MEASUREMENTS – Khaled Saleh, Sumed

(More details with presentation – including photos and charts)

Khaled summarised developments in the Sumed system, noting that storage capacity has more than doubled at both Ain Sikhna and Sidi Kerir since 1997. now totalling around 40 million barrels, equally split between the two terminals.

Discharge metering facilities had been installed at Ain Sukhna as part of the original development but were adandoned after 2 years as air/gas entrainment led to cavitation of the turbine meters and the system could not cover the required flow range. Operations have since relied on static tank measurements.

The original samplers were replaced by Jiskoot jet mix systems in 1992 and these were comprehensivley proved by water injection testing. An on-site laboratory provides density and water content analysis and particpates in the ASTM inter-laboratory testing programme.

As an aid to system integrity, all the main line valves were upgraded between 2000 and 2010.

The new discharge metering project started in 2010 with TUV NEL providing the specification, design study and uncertainty analysis. Krohne Oil and Gas were awarded the contract for a single system for the No; 2 sealine in 2011 and this was fully commissioned and running by the end of 2012.

In order to be able to fully assess the performance of the metering system 3 of the shore tanks were recalibrated to provide a comparison. This was done both by “normal” surveying technique (EODR) and also by incremental fill to ISO 4269. The incremental fill calibration required installation of a pumping system, 10” turbine meter and 24” prover loop together with an 8” master prover/4” master meter system to ensure that the fill liquid was measured throughout to a very low uncertainty. The maximum difference at any level was found to be 0.02%.

The ultrasonic metering installation had been described in the previous presentation and Khaled discussed a commissioning problem with the prover sphere launcher and its solution before presenting proving and operating results and showing an example of the real time uncertainty analysis which the system runs for each batch. Overall uncertainty was given as 0.027%.

Comparisons show an agreement to 0.01% with vessel GSV discharged figures and 0.03% with the static tank measurements.

Sumed are reviewing throughput forecasts to determine whether instalation of similar systems on the other two import lines is justified at present.

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18.0 21st CENTURY INSPECTION – David Bleser, SGS and Bruce Nicholls, BP

David and Bruce ran through the purposes and main components of an independent cargo inspection, highlighting those which are now raising issues as technlogy and practices change and which need to be recognised as guidlines and contract documents are updated.

The main points were as follow:

Contracts and nominationsThere was a discusion regarding the need or otherwise for the inspection company to be aware of the contract type (FOB, CIF, etc). However, it was agreed that the inspector needed to know the amount of access he was expected to have at the terminal and that this should be discussed with the client at the nomination stage.

Ship’s tank inspectionClosed/restricted operations inreasingly prevent visual inspection and single mid-tank gauge/sampling points prevent useful soundings. It was suggested that an “opinion of risk” could be prepared based on previous cargos and vessel cleaning reports and that line and first foot samples would provide additional security. It was suggested that consideration should be given to using alternative terms to “tank inspection” as this can rarely be performed.

Key meetingAttendance by the inspector is required by HM28/29, etc. However, it was noted meetings are often held without the inspector.

It was agreed to try to determine how frequent this problem is, perhaps using a questionnaire.ACTION D BLESER

Shore measurementsTerminal access was discussed above. Access to tank tops is also increasingly an issue due to safety concerns and lack of personnel to accompany inspectors. This leads to lack of manual measurements and opportunities to collect samples.It was suggested that more emphasis should be placed on terminals to having meter and ATG/ATT calibration records readily available for inspection. Modern equipment, properly maintained should offer better accuracy than manual measurements.

Ship issuesIt was noted that limited sample sizes available through vapor control valves was extending the time needed to complete ship board sampling and adding to handling problems relating to the number, bulk and weight of samples. The doubtful value of composites made on deck was discussed. It was hoped that the work of the JSWG might address some of these issues but, again, in a number of areas, standards do not reflect what is now possible in the field.

Terminal issuesIt was noted that it was rarely possible for an inspector to ensure correct valve settings across a terminal or to seal valves. This makes any loss investigation dependent on the terminal being able to provide adequate records after the event.

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19.0 * LNG CUSTODY TRANSFER MEASUREMENT – Jingshi Ruan Yang, Statoil

(More details with presentation)

Jingshi gave an overview of LNG properties and then described the custody transfer calculations, pointing out the issue of changes to quantity and quality during transportation and the problems of sampling.

The need for on-line sampling was illustrated using an example of a fixed contract specification vs on-line measurement which gave a difference of over $1 million for a single cargo.

The various standards which apply were listed and, finally the need to specify a consistent reference temperature for the measurement was noted, the energy delivery difference between 25C, 15C and 0C being significant.

20.0 * EBOTA (EUROPEAN BULK OIL TRADERS’ ASSOCIATION)– Adam Panni, EBOTA (Morgan Stanley)

Adam kindly ran through a presentation first given at the European Barge workshop by Andries Eeltink on May 8th.

EBOTA held it first formal meeting in June 2011, following initiatives begun in 2008, and currently has 19 members, including trading companies and oil companies with trading operations.

The driver for the group was to establish a representative body to develop a consistent industry wide approach to REACH and to set up a helpdesk for users to access information.

Three working groups have now been established covering: REACH, RED (EU Renewable Energy Directive) and, most recently, issues concerning ADN (EU agreement for international carriage of dangerous goods on inland waterways).

In addition to making representations to the authorities (ECHA) and setting up the helpdesk the REACH group have been developing standard contract clauses to cover REACH, providing training, and working through issues relating to responsibilities of the various parties identified in the legislation, including non-EU based entities. Administrative support is also provided to members relating to data capture and audit requirements.

During discussion it was noted that a number of REACH audits had been carried out but that, so far, no penalties had been imposed.

Work has only recently started on RED and no action has been reported form the AND group.

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21.0 ANY OTHER TECHNICAL BUSINESS

IndemnitiesIt was noted that vessels were still asking inspection personnel and others to sign indemnities before permitting them to board or do their work. These are seen as obstructive and of doubtful legality.

IFIA have issued a bulletin covering the issue. However, it was felt that to stop the practice this would need to be approached through charter parties and members agreed to approach their respective chartering departments to ask for agreements to be amended to address this issue.

ACTION MEMBERS

23.0 NEXT MEETING

The next meeting will be held in Rio de Janeiro, Brazil, kindly hosted by Petrobras on November 5th and 6th. The HMC-4 A and B meetings will be on November 7th.

Distribution

All HMC-4B Representatives psh 19/08/13

ATTACHMENT 1

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