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Title: Allocation Measurement
Author: Jeffrey L. Savidge
Source: 2008 International School of Hydrocarbon Measurement
Year Published: 2008
Abstract: Allocation is the process of assigning the proper portions of aggregated product flows back to individual source streams, owners, leases or measurement point. The assignment process is a standard method that is agreed upon and used by contracting parties. It is designed and intended to be fair, cost efficient and practical. By providing an efficient product sales transaction mechanism, allocation measurement helps to reduce capital and operating costs without jeopardizing the principal goal of fair treatment among parties. Reducing fluid measurement costs facilitates the development of marginal fields. Allocation measurement can fall under federal or regulatory guidelines. Individual agreements must meet or exceed those guidelines. API MPMS Chapter 20.1 is the industrys allocation measurement standard. Without it volumes of technical measurement documents would be required to accompany commercial contracts. The first edition of API 20.1 was prepared in 1993 and recently reaffirmed in 2006. Its scope is to provide a set of design and operating guidelines for implementing liquid and gas allocation measurement systems. As such, it provides recommendations for metering, static measurement, sampling, proving, calibrating, and calculation procedures. Due to the breadth of the measurement topics covered under allocation measurement, API Chapter 20.1 focuses on identifying procedures, providing practical and technical guidance in implementing allocation metering systems, and acts, in part, as a master guide to other important measurement guidelines.