Common use of Process Description Clause in Contracts

Process Description. 1 in Section 4 is a block flow diagram showing the overall gas and liquid flows for Platform ▇▇▇▇▇ and the LOGP. The oil and gas production is allocated for royalty purposes as the production is commingled from both Pt Ped and Tidelands offshore. Each of the respective gas streams for Pt Ped gas and Tidelands gas are kept separate and a gas analysis is taken of each before commingling for transporting to LOGP. The gas is analyzed using gas chromatography by a state certified lab to determine BTU content and natural gas liquid content for each source of gas delivered to LOGP. This is used to determine the theoretical MMBTU and theoretical natural gas liquid products used for allocation purposes. Theoretical Pt Ped Gas and Theoretical Tidelands Gas, are adjusted each month by the gas lift gas volume so as to reflect net theoretical gas production. Gas lift gas is assumed to be the first gas recovered from gas lift ▇▇▇▇▇ and is therefore deducted from the Theoretical Pt Ped Gas and Theoretical Tidelands Gas. Meters FE-101GL (“Pt Ped Gas Lift Gas”) and FE-201GL (“Tidelands Gas Lift Gas”) will meter the volume of gas sent into the respective areas of production and will be subtracted from Theoretical Pt Ped Gas and Theoretical Tidelands Gas, respectively. At LOGP, the crude oil is reheated, dewatered and shipped to ConocoPhillips Santa ▇▇▇▇▇ Refinery. Gas released from the crude oil during processing at LOGP is captured in the vapor recovery system and combined (via meter 2452) with gas from Platform ▇▇▇▇▇ (via meter 2453). This mixture passes through meter 2450 and mixes with gas from Lompoc Field (from meter 2675) along with gas recovered from injection ( (Purisima 73, meter 2451) before treatment in the gas processing unit. The gas processing unit removes heavy hydrocarbons (C3+) and waste products (water, H2S, and CO2) from the gas to be sold. Treated gas is normally compressed and sold into the SOCAL Pipeline (via meter 5811). During maintenance shutdowns or whenever the sales gas is “off specification,” the gas is injected into the Lompoc Field at Purisima well P- 73 (via meter 2462). Gas from Platform ▇▇▇▇▇ that is injected onshore, is metered, allocated and royalties are paid on the volume injected based on the weighted average sales price per Mcf for the month of injection. Gas recovered from storage (via meter 2451) is non-royalty bearing since the royalty was paid as the gas was injected. Natural Gas Liquids condense in the gas plant. Natural Gasoline is usually blended into the dry crude oil (via meter 2468) using a metering pump as discussed in Section 2. The Natural Gasoline may also be sold by loading it onto tank trucks (via meter 2470). This generally occurs during shut-downs of the refinery and/or the oil pipeline The Natural Gasoline produced can vary from 0 to 11,000 gallons per day (“gpd”). The BP-Mix that is removed from the gas stream at the gas processing unit is sold and transported by truck (via meter 2471). BP-Mix production will vary from 0 to 18,000 gpd. Each well that is produced by gas lift has an individual meter for the gas volume injected. The gas production from the test separator (when a well is in test), is adjusted for the gas injected volume to arrive at the well’s theoretical produced gas. For ▇▇▇▇▇ that are produced using electric submersible pumps, the gas which is metered at the test separator is the theoretical produced gas for the well.

Process Description. 1 in Section 4 is a block flow diagram showing the overall gas and liquid flows for Platform ▇▇▇▇▇ and the LOGP. The oil and gas production is allocated for royalty purposes as the production is commingled from both Pt Ped and Tidelands offshore. Each of the respective gas streams for Pt Ped gas and Tidelands gas are kept separate and a gas analysis is taken of each before commingling for transporting to LOGP. The gas is analyzed using gas chromatography by a state certified lab to determine BTU content and natural gas liquid content for each source of gas delivered to LOGP. This is used to determine the theoretical MMBTU and theoretical natural gas liquid products used for allocation purposes. Theoretical Pt Ped Gas and Theoretical Tidelands Gas, are adjusted each month by the gas lift gas volume so as to reflect net theoretical gas production. Gas lift gas is assumed to be the first gas recovered from gas lift ▇▇▇▇▇ and is therefore deducted from the Theoretical Pt Ped Gas and Theoretical Tidelands Gas. Meters FE-101GL (“Pt Ped Gas Lift Gas”) and FE-201GL (“Tidelands Gas Lift Gas”) will meter the volume of gas sent into the respective areas of production and will be subtracted from Theoretical Pt Ped Gas and Theoretical Tidelands Gas, respectively. At LOGP, the crude oil is reheated, dewatered and shipped to ConocoPhillips Santa ▇▇▇▇▇ Refinery. Gas released from the crude oil during processing at LOGP is captured in the vapor recovery system and combined (via meter 2452) with gas from Platform ▇▇▇▇▇ (via meter 2453). This mixture passes through meter 2450 and mixes with gas from Lompoc Field (from meter 2675) along with gas recovered from injection ( (Purisima 73, meter 2451) before treatment in the gas processing unit. The gas processing unit removes heavy hydrocarbons (C3+) and waste products (water, H2S, and CO2) from the gas to be sold. Treated gas is normally compressed and sold into the SOCAL Pipeline (via meter 5811). During maintenance shutdowns or whenever the sales gas is “off specification,” the gas is injected into the Lompoc Field at Purisima well P- 73 P-73 (via meter 2462). Gas from Platform ▇▇▇▇▇ that is injected onshore, is metered, allocated and royalties are paid on the volume injected based on the weighted average sales price per Mcf for the month of injection. Gas recovered from storage (via meter 2451) is non-royalty bearing since the royalty was paid as the gas was injected. Natural Gas Liquids condense in the gas plant. Natural Gasoline is usually blended into the dry crude oil (via meter 2468) using a metering pump as discussed in Section 2. The Natural Gasoline may also be sold by loading it onto tank trucks (via meter 2470). This generally occurs during shut-downs of the refinery and/or the oil pipeline The Natural Gasoline produced can vary from 0 to 11,000 gallons per day (“gpd”). The BP-Mix that is removed from the gas stream at the gas processing unit is sold and transported by truck (via meter 2471). BP-Mix production will vary from 0 to 18,000 gpd. Each well that is produced by gas lift has an individual meter for the gas volume injected. The gas production from the test separator (when a well is in test), is adjusted for the gas injected volume to arrive at the well’s theoretical produced gas. For ▇▇▇▇▇ that are produced using electric submersible pumps, the gas which is metered at the test separator is the theoretical produced gas for the well.