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EXHIBIT 3-3: ALBERTA ENERGY RESOURCE CONSERVATION BOARD (ERCB)<br />

[Directive 017, May 2007]<br />

a.) Directive 017 (EUB/Board, May 2007), spells out the measurement requirements for custody transfer with<strong>in</strong> the Upstream<br />

Oil <strong>and</strong> Gas operations <strong>in</strong> Alberta, Canada. The ERCB st<strong>and</strong>ards are stated as “maximum <strong>uncerta<strong>in</strong>ty</strong> of monthly volume”<br />

<strong>and</strong>/or “s<strong>in</strong>gle po<strong>in</strong>t measurement <strong>uncerta<strong>in</strong>ty</strong>”, as listed <strong>in</strong> Tables 3-2 for Oil Systems <strong>and</strong> Gas Systems measurements,<br />

respectively.<br />

b.) The uncerta<strong>in</strong>ties are to be applied as “plus/m<strong>in</strong>us” (e.g., ±5%), <strong>and</strong> only measurements at the delivery or sales po<strong>in</strong>ts are<br />

required to meet the highest accuracy st<strong>and</strong>ards s<strong>in</strong>ce they would have a direct impact on royalty determ<strong>in</strong>ation.<br />

Table 3-2. Summary of Alberta ERCB Accuracy Requirements a<br />

Maximum Uncerta<strong>in</strong>ty<br />

of Monthly Volume<br />

S<strong>in</strong>gle Po<strong>in</strong>t<br />

Measurement<br />

OIL SYSTEMS MEASUREMENTS<br />

(i) Total battery <strong>oil</strong> (delivery po<strong>in</strong>t measurement)<br />

Delivery po<strong>in</strong>t measures >100 m 3 /d N/A 0.5%<br />

Delivery po<strong>in</strong>t measures < 100 m 3 /d N/A 1%<br />

(ii) Total battery <strong>gas</strong> (<strong>in</strong>cludes produced <strong>gas</strong> that is<br />

vented, flared, or used as fuel)<br />

> 16.9 10 3 m 3 /d 5% 3%<br />

> 0.50 10 3 m 3 /d but < 16.9 10 3 m 3 /d 10% 3%<br />

< 0.50 10 3 m 3 /d 20% 10%<br />

(iii) Well <strong>oil</strong> (proration battery)<br />

Class 1 (high), > 30 m 3 /d 5% 2%<br />

Class 2 (medium), > 6 m 3 /d but < 30 m 3 /d 10% 2%<br />

Class 3 (low), > 2 m 3 /d but < 6 m 3 /d 20% 2%<br />

Class 4 (stripper), < 2 m 3 /d 40% 2%<br />

(iv) Well <strong>gas</strong> (proration battery)<br />

> 16.9 10 3 m 3 /d 5% 3%<br />

> 0.50 10 3 m 3 /d but < 16.9 10 3 m 3 /d 10% 3%<br />

< 0.50 10 3 m 3 /d 20% 10%<br />

GAS SYSTEMS MEASUREMENTS a<br />

(i) Gas deliveries (sales <strong>gas</strong>) N/A 2%<br />

(ii) Hydrocarbon liquid deliveries<br />

Delivery po<strong>in</strong>t measures >100 m 3 /d N/A 0.5%<br />

Delivery po<strong>in</strong>t measures 0.50 10 3 m 3 /d 5% 3%<br />

< 0.50 10 3 m 3 /d 20% 10%<br />

(vi) Flare <strong>gas</strong> 20% 5%<br />

(vii) Acid <strong>gas</strong> N/A 10%<br />

(viii) Dilution <strong>gas</strong> 5% 3%<br />

(ix) Well <strong>gas</strong> (well site separation)<br />

> 16.9 10 3 m 3 /d 5% 3%<br />

< 16.9 10 3 m 3 /d 10% 3%<br />

(x) Well <strong>gas</strong> (proration battery) 15% 3%<br />

(xi) Well condensate (recomb<strong>in</strong>ed) N/A 2%<br />

a Note: Extracted from Section 1.8.1 <strong>and</strong> 1.8.2, respectively, <strong>in</strong> Reference 20<br />

The directive makes it clear that other measurement po<strong>in</strong>ts that play a role <strong>in</strong> the overall control <strong>and</strong> account<strong>in</strong>g process would<br />

be subject to less str<strong>in</strong>gent accuracy st<strong>and</strong>ards. These less str<strong>in</strong>gent accuracy st<strong>and</strong>ards are designed to accommodate physical<br />

limitations <strong>and</strong>/or the overall economics of achiev<strong>in</strong>g very str<strong>in</strong>gent accuracy st<strong>and</strong>ards for each volumetric measurement.<br />

Pilot Version, September 2009 3-8

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