Lease Operator Training: Decrease the number of rejected oil hauls with this simple trick…

Ten years ago, a truckload of crude was worth about $2,500… today, that same load is worth $15,000+. As Savvy Lease Operators, we have plans for that money. Payroll calls for that money, well maintenance calls for that money, and quite frankly, your wife calls for that money.

lease operator training

We all know that after the crude oil purchaser has been notified that a tank is ready to be “run”, the purchaser arrives on location to take several measurements before the oil is transferred and operator is paid. However, a rejected tank due to an excessive BS&W level could be the monkey wrench that’s thrown into an otherwise smooth afternoon.

Although the Savvy Operator is concerned about the BS&W level, he knows that special attention must be paid to how the BS&W is measured…

The basics, outlined in Chapter 13 of the Marginal Well Commission’s “Lease Pumper’s Handbook”, state that to determine the BS&W of a tank, the lease pumper should use the following procedure:

  1. Take one sample of crude oil from near the top.
  2. Take  a second sample approximately 10 or 12 inches above the bottom.
  3. Place the two samples in a centrifuge and determine the amount of BS&W in each.
  4. Add these two values together.
  5. Divide by two.

However, something you may not know is that although this computation gives the average BS&W throughout the tank, the average is computed on a straight line while the actual BS&W contamination is on a curved lineTherefore, the oil purchaser has a small “shakeout” advantage over the seller.

What does GreaseBook suggest you do if your tank is just over the 1% threshold? 

The Savvy Operator knows that every once in awhile, a tank that is rejected under the two-sample method will test as saleable by taking a third sample from the middle. Remember, a third sample from the center of the tank (and dividing by three) could do just the trick.

Keep them purchaser checks rollin’ in!!

(For more reading on the topic, check out this post: Oil Field Pumpers: The solvents you use to determine BS&W may be reducing your oil sales…)

  • willie vaden

    Procedure is wrong. The sample method is old school when oil was $10. API has long abandoned these types of slack utilization of procedures for honest custody transfers.

    • Greg Archbald

      Thanks for the update, Willie! Post has been yanked from our “Savvy Operator” series!!

  • Cody H.

    The problem is getting them to follow API, in fact I’d like to find an attorney that could tell me if buyers are breaking any laws by not following API or ASTM, I couldn’t find answer on web maybe you can help and and get attorney who could write a opinion about it!

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