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BRAE-FORTIES PIPELINE SYSTEM
PIPELINE LIQUIDS TRANSPORTATION AGREEMENT
SECTION 1
FORM OF AGREEMENT
This document illustrates the structure of the section of the agreement which will contain field-specific terms for transportation of pipeline liquids in the Brae-Forties Pipeline System (Section 1). All text shown in blue and italics is explanatory material. Sample articles in Section 1 are also set out for illustration purposes only; the majority will be tailored to the Shippers’ Field requirements. This document should be read in conjunction with the Brae-Forties Pipeline System standard form of general terms and conditions [website link to Section 2].
Brae-Forties PLTA Section 1 August 2012
AGREEMENT FOR THE TRANSPORTATION OF [FIELD X] PIPELINE LIQUIDS
THIS AGREEMENT is made this [ ] day of [ ] 20[ ].
BETWEEN
1. MARATHON OIL U.K. LLC (“Marathon”) a limited liability company existing under
the laws of Delaware USA, having a UK Establishment with registered number BR001797
at Capital House, 25 Chapel Street, London NW1 5DQ;
2. BP EXPLORATION OPERATING COMPANY LIMITED a company incorporated in
England and Wales (Company Number 00305943) whose registered office is situated at
Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP;
3. CENTRICA RESOURCES LIMITED a company incorporated in England and Wales
(Company Number 02855151) whose registered office is situated at Millstream,
Maidenhead Road, Windsor, Berkshire SL4 5GD;
4. JX NIPPON EXPLORATION AND PRODUCTION (U.K.) LIMITED a company
incorporated in England and Wales (Company Number 03288689) whose registered office
is situated at 2nd Floor, New Liverpool House, 15 Eldon Street, London EC2M 7LD;
5. TAQA BRATANI LIMITED a company incorporated in England and Wales (Company
Number 05975475) whose registered office is situated at c/o McGrigors LLP, 5 Old Bailey,
London EC4M 7BA;
6. TAQA BRATANI LNS LIMITED a company incorporated in England and Wales
(Company Number 06230540) whose registered office is situated at c/o McGrigors LLP, 5
Old Bailey, London EC4M 7BA;
of the first part (who are the current members of the Brae Group);
Brae-Forties PLTA Section 1 August 2012
AND
8. [SHIPPER];
9. [SHIPPER]; and
(…) [SHIPPER];
numbers 8, 9 [ ] and [ ] of the second part, (who are the current members of the Shippers Group)
and may be referred to individually herein as a “Shipper”.
WHEREAS:
A. The members of the Brae Group own the Brae-Forties Pipeline System and enter into this
Agreement in that capacity, and Marathon is the current Brae Operator of the Brae-Forties
Pipeline System.
B. Shippers Operator is the operator of the Shippers Field.
C. The Shippers Group have interests in the Shippers Field.
D. The Shippers Group desire to have Shippers Pipeline Liquids transported through the Brae-
Forties Pipeline System and delivered to the FPS System, and the Brae Group is prepared to
so transport such Pipeline Liquids and to deliver such Pipeline Liquids to the FPS System.
E. The Parties now wish to record herein the terms and conditions for the transportation of such
Shippers Pipeline Liquids.
NOW THEREFORE IT IS HEREBY AGREED AS FOLLOWS:-
Brae-Forties PLTA Section 1 August 2012
ARTICLE 1 – DEFINITIONS AND INTERPRETATION
Definitions which are applicable only to the Producers Field or relate specifically to the
commercial terms in Section 1 are set out in Section 1; common definitions which are used
uniformly throughout the standard terms of Section 2 are set out, principally although not
exclusively, in Clause 1.1 of Section 2.
References in the sample definitions below to an Intervening System will not be applicable
if the Shippers Pipeline is connected directly to the Brae-Forties Pipeline System. Note that
for such a direct connection, a Tie-In Agreement will be required to be entered into between
the Shippers Group and the Brae Group.
1.1 In this Agreement, words and expressions shall have the same meaning as are respectively
assigned to them in this Article 1.1 and Clause 1.1 of Section 2.
Entry Point means [describe] the point at which the [Intervening or Shippers] System
connects to the Brae-Forties Pipeline System and constitutes the point where custody of
Shippers Pipeline Liquids is transferred to the Brae Group.
Intervening System means the processing and transportation system[s] known as the [ ]
[describe] between the Intervening System Entry Point and the Entry Point and connecting
the Shippers System with the Brae-Forties Pipeline System.
Intervening System Entry Point means [ ].
[Intervening System Operator means [ ] in its capacity as operator
of the [ ] System and its successor from time to time in such capacity.]
Shippers Field means the hydrocarbon accumulation[s] generally known as the [ ]
underlying block[s] [ ] within the production licence[s] [ ] on the United Kingdom
continental shelf. A plan showing the Shippers Field is set out in Part A to this Exhibit I.
Brae-Forties PLTA Section 1 August 2012
Shippers Group means all the companies or corporations from time to time having a
beneficial interest in the Shippers Field and the Shippers System. The Shippers Group
currently comprises:
[ ]
[ ]
Shippers Operator means the operator of the Shippers Field from time to time (which at the
date hereof is [ ]) acting as such on behalf of the Shippers Group.
Shippers Pipeline means [ ].
Shippers Platform means [ ].
Shippers System means the production, [processing] and pipeline facilities and all other
facilities associated therewith existing from time to time and necessary to produce Pipeline
Liquids from the Shippers' Field and to deliver the same to the [Intervening System] Entry
Point. [Such facilities shall include but not be limited to the Shippers Platform, and the
Shippers Pipeline.]
1.2 For all purposes of this Agreement, except as otherwise expressly provided or as the context
otherwise requires:
(a) any reference to an "Article", an "Exhibit" or an “Attachment” refers to an article of
or an exhibit or attachment to this Section 1; and
(b) any reference to a “Clause” refers to a clause of or an attachment to Section 2
as the case may be.
ARTICLE 2 – FORM OF AGREEMENT
This Pipeline Liquids Transportation Agreement is based around three key components:
Form of Agreement (Specific Terms) – each new field is different and sometimes requires an
individual commercial solution depending on the nature of service required. We have
Brae-Forties PLTA Section 1 August 2012
grouped together the key commercial terms that may vary from field to field, into a simple
streamlined document that can be negotiated and drafted simply and quickly.
Conditions of Contract (General Terms) – The Brae-Forties Pipeline System is a large
integrated oil transportation system with a very large number of customers. This document
details the general terms, conditions and procedures that are applicable to all customers,
that have been developed over time, based on our experience and our commitments, to
ensure the safe, efficient and sustainable operation and management of the system.
Consistency with FPS Agreements – The Brae-Forties Pipeline System, as a system which is
linked to the FPS System and delivers all Pipeline Liquids into the FPS System, must adopt
procedures which ensure operational consistency across both systems. Over time, the Brae-
Forties Pipeline System and FPS have developed agreements which ensure such
consistency. Following the adoption of the current FPS contractual approach, the Brae
Group has elected to introduce and publish on the internet a contract structure which is
similar to the FPS approach, in order to enable potential customers to be satisfied that there
will be a consistent approach to operational matters and to minimize the technical review
required. The Brae Group also expects this will minimize the effort required to review this
Agreement from a commercial and legal perspective, although the Brae Group’s approach
to various commercial and/or legal issues will be substantively independent from the view
taken by FPS.
2.1 This Agreement shall comprise the following documents:-
Section 1 Form of Agreement; and
• Exhibit I Description of Shippers System
• Exhibit II Specification for Shippers Pipeline Liquids
• Exhibit III Composition of Shippers Pipeline Liquids
• Exhibit IV Shippers Pipeline Liquids FMQ Profile
• Attachment A Measurement and Allocation Procedure
Section 2 Conditions of Contract
Brae-Forties PLTA Section 1 August 2012
2.2 The provisions contained in Section 2, the Conditions of Contract, form part of this
Agreement and have full force and effect as if set out in full within this Section 1.
ARTICLE 3 – SERVICE PROVISION AND COMMENCEMENT
At the time of the execution of this agreement the commencement date will be mutually
agreed between the Brae Group and the Shippers Group, and should be consistent with the
commencement date agreed between the Shippers Group and FPS.
In the event that the field starts production in advance of this date the Brae Group will use
reasonable endeavors to accept such produced volumes.
Duration of the agreement is covered by provisions in Section 2.
3.1 Provision of Services
Subject to the terms and conditions of this Agreement, and in consideration of, inter alia,
payment of the tariff, the Brae Group shall provide the Services.
3.2 Effective date
This Agreement shall be effective on and from the date of its signature.
3.3 Commencement Date
The commencement date for the acceptance of the Shippers Pipeline Liquids shall be [ ]
(the “Commencement Date”).
The Brae Group shall use reasonable endeavours to accept Shippers Pipeline Liquids from
any earlier date, if so requested by notice from the Shippers Operator.
ARTICLE 4 – QUANTITIES
To meet the future throughput requirements of all customers, both new and existing, it is
necessary to manage and optimize capacity within the Brae-Forties Pipeline System.
Brae-Forties PLTA Section 1 August 2012
In addition to providing customers with certainty of future capacity, successful management
of capacity ensures the Brae-Forties Pipeline System is able to maintain high levels of
service and availability.
The Brae-Forties Pipeline System has adopted a capacity management system designed to ensure an approach which is consistent with the way the FPS manages capacity, using a booking mechanism as illustrated in the diagram below:
We can tailor the booking mechanism to meet the needs of the Shippers Field as set out
below:
4.1 Peak Entitlement
Each contract will contain a Peak Entitlement that will govern the maximum allowable
booked capacity in the system.
The Peak Entitlement is set at the time of contract execution to frame the level of capacity
and service to which the agreed tariff and terms are applicable.
4.2 FMQ (Firm Maximum Quantity)
Each contract will contain an FMQ profile, representing the Shippers Group’s bona-fide
life of field view of production from the field at the time of contract execution.
Each Shippers Group shall be granted capacity rights for the field in the Brae-Forties
Pipeline System equal to the FMQ profile.
Brae-Forties PLTA Section 1 August 2012
4.3 Changes to FMQ
The frequency of changes to the FMQ profile and the mechanism for establishing the
Unrestricted Booking Range can be tailored to meet the specific needs of the field.
The notice period for booking revisions typically ranges from one year for large fields to
one month for small marginal fields.
The Shippers Group shall be entitled to make unrestricted revisions to the FMQ profile for
the field within the Unrestricted Booking Range.
In addition, each Shippers Group shall be entitled to increase the FMQ profile for the field
above the Unrestricted Booking Range (but not above the Peak Entitlement) subject to there
being sufficient uncontracted capacity available within the Brae-Forties Pipeline System.
The FMQ profile may not be increased above the Peak Entitlement
All FMQ profiles should represent the Shippers Group’s bona-fide view of production for
the life of the field.
The Brae Group and the Shippers Group shall mutually agree a process to resolve any
disputes over the bona-fide nature of FMQ profiles.
4.4 Allocation
If the Shippers Pipeline Liquids are commingled with other pipeline liquids prior to delivery
to the Brae-Forties Pipeline System, the Shipper will be required to procure that the
Intervening System Operator allocates pipeline liquids to the Shippers Field, and advises
the Brae Operator of the results of such allocation.
ARTICLE 5 – QUALITY
The safe operation of the Brae-Forties Pipeline System and the FPS System and the
reputation and value of the Forties Blend rely on the continued management of the quality
and specification of the Shipper’s Pipeline Liquids, and compliance with the FPS System
requirements in this regard must be met, so that the Brae-Forties Pipeline System’s status
as a compliant entry point to the FPS System is not jeopardized. In certain respects, the
standard specification may be stricter than that of the FPS System, where this is required
Brae-Forties PLTA Section 1 August 2012
for the commingled stream of Pipeline Liquids being delivered from the Brae-Forties
Pipeline System to stay in compliance.
The standard specification has been developed to meet the needs of most fields. For any
variation from the standard specification, the Brae Group will need to ensure that there are
no adverse impacts on the commingled Pipeline Liquids in the Brae-Forties Pipeline System
and, if such variation is also a variation from the FPS System standard specification, the
Shippers Group will be required to warrant that the FPS System has agreed to the variation.
5.1 The quality of Shippers Production delivered at the Entry Point shall comply with the
quality criteria in the specification included in Exhibit II and shall not differ from the
compositional data contained in Exhibit III to an extent which, in the Brae Operator’s
opinion, is material.
ARTICLE 6 – TARIFF AND CHARGES
All tariffs and charges for use of the Brae-Forties Pipeline System will be economically
justified, reflect the nature of the service being provided, and represent a fair balance
between risk taken and return earned.
All tariffs offered for use of the Brae-Forties Pipeline System are guaranteed until 2015,
providing stability and simplicity and protecting the field owner from rising infrastructure
costs.
The Brae Group may exercise an option to charge a share of operating costs in lieu of the
tariff after 2015. This option is set out in Clause 8.04 of Section 2.
6.1 Transportation Tariff
Details of our tariffs can be found on our website at [ ]
6.2 Escalation
The tariff offered will be escalated to reflect inflation in the cost of providing the Services.
Brae-Forties PLTA Section 1 August 2012
Escalation methods should respect our principle of there being a fair balance between risk
and reward for both parties.
6.3 Send or Pay
Where no capital investment has been made or future capital investments are required to
accommodate a new field or fields, and provided there are no other special circumstances,
there will be no send or pay.
In the circumstances where the Brae Group has made a capital investment or future capital
investments are required to accommodate a new field or other special circumstances apply,
such as extending the term of the agreement in return for continuing a tariff-based service,
or committing a significant portion of remaining capacity, then appropriate Send or Pay
provisions will be agreed to reflect a fair balance between risk and reward
ARTICLE 7 – NOTICES
7.1 Notices
All notices and other communications to be sent hereunder shall, unless otherwise specified
herein, be in writing and sent to the relevant addresses given below, and shall be sufficiently
made if sent by pre-paid first class post, facsimile, electronic mail or by delivering the same
by hand to the address of the other Party specified below (which may be changed from time
to time by notice similarly given)..
Addresses for notices to be sent under this Agreement:
Brae-Forties PLTA Section 1 August 2012
THE BRAE OPERATOR (for itself and on behalf of the Brae Group)
Marathon Oil U.K. LLC
Att: UK Commercial Manager
By Mail: Marathon House
Rubislaw Hill
Anderson Drive
Aberdeen AB15 6FZ
By Fax: +44 1224 803190
SHIPPERS OPERATOR
Att: [ ]
By Mail [ ]
By Fax [ ]
SHIPPERS GROUP
Att: [ ]
By Mail [ ]
By Fax [ ]
Brae-Forties PLTA Section 1 August 2012
7.2 Effective time
Notices shall be deemed to have been received at the time of delivery if delivered by hand or
sent by electronic mail or fax, and on the second Working Day following the day of sending
if sent by pre-paid first class post. If the time of such deemed receipt is outside customary
hours of business or is on a day other than a Working Day, notices shall be deemed to have
been received and shall be effective from 10.00 hours on the first Working Day thereafter.
ARTICLE 8 – GENERAL PROVISIONS
8.1 Conflict
In the event of any conflict between the Articles and Clauses of this Agreement and
(a) the Exhibits or Attachments to this Agreement; and/or
(b) the Shippers Field Operating Procedures referred to in Clause 10.02 of Section 2;
the terms and conditions of the said Articles and Clauses shall prevail and in the event of
conflict between the terms and conditions of the said Exhibits or Attachments and the said
Shippers Field Operating Procedures, the terms and conditions of the said Exhibits or
Attachments shall prevail.
In the event of any conflict between the provisions of this Section 1 and Section 2 of this
Agreement, then the provisions set out in this Section 1 shall prevail.
8.2 Entire Agreement
(a) Except as provided to the contrary herein, this Agreement and the Attachments
hereto contain the entire agreement between the Parties in respect of the
transportation of Shippers Pipeline Liquids within the Brae-Forties Pipeline System
and supersede any previous understandings, commitments, agreements or
representations whatsoever, oral or written.
Brae-Forties PLTA Section 1 August 2012
(b) Each Party acknowledges and agrees that it does not enter into this Agreement
relying or having relied upon any statement or representation (whether negligent or
innocent) or warranty or other provision (in any case, whether oral, written, express
or implied) made, given or agreed to by any Person (whether a Party or not) except
those expressly set out or referred to herein and the only remedy or remedies
available in respect of any misrepresentation or untrue statement made to it shall be a
claim for breach of contract under this Agreement.
(c) Article 8.2(b) shall not apply to any statement, representation or warranty made
fraudulently or to any provision of this Agreement which was induced by, or
otherwise entered into as a result of, fraud, for which the remedies shall be all those
available under the law governing this Agreement.
8.3 No waiver
No waiver by any Party of any provision of this Agreement shall be effective unless made
expressly and in writing and then only in the specific instance and for the specific purpose
for which it is given. No delay on the part of a Party in exercising any rights shall operate as
a waiver of them, nor shall a single or partial exercise of any right preclude further exercise
of it.
8.4 Amendment
This Agreement shall not be varied except by an instrument in writing signed by all the
Parties.
8.5 Further Assurance
The Parties shall execute any document, and do everything else that is reasonably necessary
in order to give full effect to the provisions and purposes of this Agreement.
Brae-Forties PLTA Section 1 August 2012
8.6 Counterpart Execution
This Agreement may be executed in any number of counterparts with the same effect as if
the signatures were upon a single engrossment of this Agreement, but shall not be effective
until each Party has executed at least one counterpart. For the purposes of evidencing
execution of this Agreement only, the Parties may be provided with a conformed copy of
this Agreement with photocopies of the relevant signed signature pages attached.
IN WITNESS whereof the Parties hereto have caused this Agreement to be executed by their duly
authorised representatives the day and year first above written.
THE BRAE GROUP
MARATHON OIL U.K. LLC
By: ______________________
BP EXPLORATION OPERATING COMPANY LIMITED
By: ______________________
Brae-Forties PLTA Section 1 August 2012
CENTRICA RESOURCES LIMITED
By: ______________________
JX NIPPON EXPLORATION AND PRODUCTION (U.K.) LIMITED
By: ______________________
TAQA BRATANI LIMITED
By: ______________________
TAQA BRATANI LNS LIMITED
By: ______________________
Brae-Forties PLTA Section 1 August 2012
SHIPPERS GROUP
For and on behalf of
[SHIPPER]
_________________________
For and on behalf of
[SHIPPER]
_________________________
For and on behalf of
[SHIPPER]
Brae-Forties PLTA Section 1 August 2012
EXHIBIT I
DESCRIPTION OF THE SHIPPERS FIELD
[MAP/COORDINATES OF THE SHIPPERS’ FIELD]
Brae-Forties PLTA August 2012
EXHIBIT II
SPECIFICATION FOR SHIPPERS PIPELINE LIQUIDS
The following specification is in respect of Shippers Production entering the Brae-Forties Pipeline
System and the FPS System. The analysis used to measure specification items shall be those
contained in the FPS System: “User Specifications: Manual of Measurement Methods”. Where a
method has yet to be agreed, the Brae Operator shall, as required, seek the Shippers Operator’s
agreement to use appropriate methods, such agreement not to be unreasonably withheld.
Carbon Dioxide Maximum of 0.2 mole % of carbon dioxide.
Nitrogen Maximum of 0.2 mole % of nitrogen.
Carbonyl Sulphide Maximum of 0.02 ppm by weight.
Hydrogen Sulphide Maximum of 0.1 ppm by weight as hydrogen
sulphide.
Mercaptans Maximum of 0.1 ppm by weight as sulphur of volatile
mercaptans, which separate into Raw Gas under
Kinneil operating conditions.
Mercury Maximum of 0.35 ng/g as volatile organic or
inorganic mercury, which separate into Raw Gas
under Kinneil operating conditions.
Sediment and Water
Maximum of 2% by volume provided that Shippers
Pipeline Liquids are essentially free of sediment.
Produced water shall be made compatible (at the cost
of the Shippers Group) with water produced by other
FPS System Users.
True Vapour Pressure Maximum of 125 psig at 60oF.
Brae-Forties PLTA August 2012
Viscosity Maximum of 15 centiStokes at 4oC.
Acidity The total acid number shall be no greater than 0.10
mg of potassium hydroxide per gram of Stabilised
Crude Oil derived from Shippers Production.
Emulsions Shippers Production and production from Other Users
when mixed should not form emulsions which are
stable at temperatures at or above 36oC and pressures
at or above one bar absolute.
Metals Vanadium plus nickel shall not exceed 5 ppm by
weight.
Salt Content Maximum of 1500 milligrams per litre of sodium,
calcium and magnesium chlorides in solution.
Entry Pressure The back pressure at the Entry Point is expected to be
in the range 155 to 170 barg with a maximum
pressure of 175 barg required to be overcome by the
Shippers Production.
Oxygenates Shippers Production shall not contain oxygenates.
Alcohols Shippers Production shall not contain alcohols.
General No chemical additives or processing material shall be
injected into Shippers Production either directly or
through processing without prior consultation and
agreement with the Brae Operator and the FPS
System Operator. All chemical additives must comply
with the Offshore Chemical Notification Scheme
(OCNS) (as administered by the Department of
Energy and Climate Change) and no endocrine
disrupter are permitted.
Brae-Forties PLTA August 2012
Shippers Production to be free of undesirable
substance or material (including, without limitation,
radioactive materials).
Brae-Forties PLTA August 2012
EXHIBIT III
COMPOSITION OF SHIPPERS PIPELINE LIQUIDS
Component (mole %)
N2
CO2
H2S
C1
C2
C3
IC4
C4
IC5
C5
C6+
Mol weight of Shippers Pipeline Liquids kg/kmol
Density of Shippers Pipeline Liquids kg/m3
Mol weight of C6+ kg/kmol
Density of C6+ kg/m3
Brae-Forties PLTA August 2012
EXHIBIT IV
SHIPPERS PIPELINE LIQUIDS FMQ PROFILE
[ Agreed Period ] FMQ (mbd)
Brae-Forties PLTA August 2012
ATTACHMENT A - MEASUREMENT AND ALLOCATION
For use with an Intervening System
The definitions set out in Sections 1 and 2 of the Agreement shall apply to this Attachment A.
1.0 Principles
The allocation procedure set out in this Attachment A is for the purpose of apportioning the
total flow of Pipeline Liquids leaving the Brae-Forties Pipeline System and the stocks and
losses (if any) within the Brae-Forties Pipeline System. This allocation procedure is based
upon the mass and composition of each User’s Pipeline Liquids flow into the Brae-Forties
Pipeline System.
For allocation purposes only the composition of each User’s Pipeline Liquids is deemed to
be unaffected by commingling within the Brae-Forties Pipeline System.
2.0 Product Allocation Procedure
The proportion of Shippers Pipeline Liquids leaving the Intervening System and the
proportion of Shippers Pipeline Liquids contributed to stock in the [Intervening System
pipeline]is determined by the Intervening System product allocation procedure as agreed
between the owners of the Intervening System and the Shippers Group.
3.0 Data
The following data shall be provided by the Shippers Operator to the Brae Operator.
3.1 Total quantity of Pipeline Liquids as measured by approved meters including:
(i) Mass in Tonnes
(ii) Volume under standard conditions:
(a) Cubic metres at 15°C and 1.01325 bara
Brae-Forties PLTA August 2012
(b) Barrels at 60°F and 14.7 psia
(iii) Sediment and water; weight % and volume %
(iv) Mercaptan sulphur content by weight ppm, determined by on-line measurement on
the[Intervening System facilities].
3.2 The above data shall be provided by the Shippers Operator to the Brae Operator for 24 hours
ending 1800 hours.
3.3 Stock changes in the [Intervening System pipeline] (from meters on the [Intervening System
facilities] to the Entry Point) as calculated by the Intervening System Operator shall be
reported to the Brae Operator within one (1) working day of the end of each FPS System
allocation period.
4.0 Brae-Forties Pipeline System Stocks
4.1 Stock and stock changes (mass dry and wet in Tonnes for oil and gas) of Shippers Pipeline
Liquids within the Brae-Forties Pipeline System shall be calculated by the Brae Operator in
accordance with the Brae Pipeline stocks procedure and advised to the Shippers Operator for
period required by the FPS System as follows:
(i) The total volume of Brae-Forties Pipeline System stocks at the end of a FPS System
allocation period is calculated.
(ii) The period required to fill the stocks in the Brae-Forties Pipeline System in
calculated taking into account each section of the Brae-Forties Pipeline System and
the volume of each User’s production in each of the days prior to the end of a FPS
System allocation period.
(iii) Each User’s contribution to the stocks is the volume of Shippers Pipeline Liquids
during the period referred to in 4.1(ii) above.
Brae-Forties PLTA August 2012
(iv) Each User’s contribution determined under 4.1(iii) above is converted into mass
(dry) after taking into account temperature and pressure of Pipeline Liquids in the
Brae-Forties Pipeline System, the water and sediment and the density of each User’s
Pipeline Liquids to give Shippers Pipeline Liquids’ share of stock mass (dry).
(v) Each User’s oil’s stock change mass (dry) is determined by subtracting its share of
stock mass (dry) at the end of the preceding FPS System allocation period from its
share at the end of the FPS System allocation period in question.
(vi) An adjustment for a proportion of the Brae-Forties Pipeline System losses (if any),
occurring during the FPS System allocation period in question, on the basis of the
Shippers Group’s share of the stock mass (dry) at the end of the FPS System
allocation period.
4.2 The Shippers Group’s share of the Intervening System Pipeline Liquids contribution to
stock in the Brae-Forties Pipeline System shall be determined by the Intervening System
product allocation procedure.
5.0 Metering
Metering and allocation systems in the Intervening System and the Shippers System shall be
such as may be acceptable from time to time to the Brae Operator (in consultation with the
Shippers Operator).