LACT Unit Operational Considerations  As  covered  in  June’s  Statement  of  the  Month,  custody  transfer  (i.e.,  buying,  selling,  or  transferring)   of   crude   oil   and   other   hydrocarbon   liquids   is   becoming   ever   more  closely   tracked   as   domestic   production   rates   and   product   values   continue   to  skyrocket.    Accordingly,  the  ever-­‐present  LACT  (Lease  Automatic  Custody  Transfer)  unit,   fundamental   to   such   custody   transfers,   must   be   properly   operated   and  rigorously   monitored.     And   the   same   holds   true   for   ACT   (Automatic   Custody  Transfer)   units,   largely   the   same   equipment   but   typically   involved   with   receipt  transfers  which  are  not  co-­‐located  with  a  crude  oil  production  lease.    While   the   functional   components   of   LACT   units   are   relatively   simple,   proper  operation  and  maintenance  are  paramount  for  ensuring  that  design  accuracy  is  fully  achieved.     The   major   elements   include   pumping,   metering,   eliminating   air/gas,  straining,  monitoring  of  S&W  (sediment  and  water),  and  sampling.    The  equipment  and   instrumentation   associated   with   each   of   these   functions   should   be   routinely  inspected,  verified,  and  properly  maintained.    The  meter  which  measures   the   custody   transfer  volumes   is,   of   course,   at   the  very  heart  of  LACT  operations.    It  must  be  regularly  examined  and  proved  to  confirm  that  it’s   still   properly   sized   and   accurate.     Other   measurement   components,   such   as  temperature,   pressure,   and   S&W,   should   also   be   verified   for   accuracy   and  reproducibility.    With  proper  operation,   regular  maintenance  and   inspections,  and  periodic   component   upgrades,   LACT   units   will   reliably   and   accurately   provide  custody  transfer  for  many  years.    The   next   Statement   of   the   Month   will   address   advanced   LACT   unit   control   and  activity  monitoring,  including  the  nearly  instantaneous  generation  and  distribution  of  electronic  delivery  tickets  for  timely  reconciliation  and  audit  trail  purposes.  

 “If  you  need  a  new  process  and  don’t  install  it,  you  pay  for  it  without  getting  it.”  ~  Ken  Stork,  past  president  of  the  Association  for  Manufacturing  Excellence