Oil Batteries vs. Custom Treating Facilities

In the complex landscape of the oil and gas industry, the choice between an Oil Battery (BT) and a Custom Treating (CT) Facility can significantly impact operational efficiency and reporting accuracy. Let’s delve into the nuances of each facility type to gain a clearer understanding of their differences and implications.

Understanding the Difference

1. Oil Battery (BT): Streamlining Central Processing

An Oil Battery serves as a central processing hub for one or more flow-lined wells. Unlike Custom Treating Facilities, Oil Batteries do not require delivery point measurement installations. Instead, volumes are prorated from the central processing facility back to the linked wells based on testing results. Any discrepancies between tested production and actual production are absorbed by a proration factor, adjusting each well’s actual production accordingly. It’s important to note that a single reporting operator is responsible for reporting both the central processing facility and well production. However, this reporting methodology has limitations on the amount of “measured” oil and condensate that can be received, especially from trucked-in volumes and SWB battery wells.

2.Custom Treating Facility (CT): Versatility in Reporting

Custom Treating Facilities come in two main types, but for our focus, let’s explore the subtype 611. These facilities are utilized to report flow-lined wells and trucked-in production into a common central processing facility. Each “truck arm” of the pipeline infrastructure requires delivery point measurement installations. An allocation factor is then used to distribute production from the central processing facility to each individual receipt point meter. This allows for flexibility as different operators can report production behind each respective receipt point meter. Unlike Oil Batteries, there’s no limit to the amount of measured production received by the CT facility.

Understanding the differences between Oil Batteries, Custom Treating Facilities, and Double Proration Batteries is crucial for oil and gas operators. Each facility type offers distinct advantages and considerations in terms of operational efficiency, reporting accuracy, and regulatory compliance. While none of these methodologies require AER approval, careful consideration of their implications is essential for successful implementation in the industry.
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