Guideline for Petroleum Measurement and Quantity Determination

Guidance
The purpose of this guideline is to provide an overview of the measurement of petroleum fluids, quantity determination and accounting methodologies used by the Western Australian Department of Energy, Mines, Industry Regulations and Safety (DEMIRS) in the determination of royalty payments.
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This guideline applies to measurement of petroleum production from Western Australia’s onshore, State and territorial waters, Barrow Island and North-West Shelf Project.

There is a requirement for a petroleum or geothermal energy measuring device to be approved under the Petroleum and Geothermal Energy Resources Act 1967 (PGERA67), the Petroleum (Submerged Lands) Act 1982 (PSLA82), Barrow Island Royalty Variation Agreement Act 1985 (BIRVAA85) and the Offshore Petroleum (Royalty) Act 2006 (OPRA06).

Under section 147 of the PGERA67, section 148 of the PSLA82 and section 13 of the OPRA06, the quantity of recovered petroleum or geothermal energy by a permittee, holder of a drilling reservation, lessee or licensee during a period is taken to be the quantity measured by a measuring device approved by the Minister and installed at the wellhead or at such other place as the Minister approves. If there is no such measuring device or the Minister is not satisfied that such a device provides accurate or proper measurements, the quantity recovered is taken to be the quantity determined by the Minister.

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