Offtake Arrangements Document An Overview

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Offtake Arrangements Document An Overview
Paul Roberts 12th May 2005
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Scope of Offtake Arrangements Document

• Sets Out Technical and Operational Details
  Relating to Gas Flows
• from NTS to LDZs
• from one LDZ to another LDZ

NTS
NTS/LDZ Offtake
Distribution Network (DN)
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Section A. Scope and Classification

• Parties
• (1) Transco NTS as NTS owner and operator
• (2) Each DNO as DN owner and operator (including
  Transco)
• System and Offtake Definitions
• Classification of Systems and Points on Systems
• Recording of Specific Details in Supplemental
  Agreements

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Section B. Connection Facilities

• Covers Land, Equipment and Buildings at each
  Offtake Site
• Measurement Equipment (detailed in Section D)
• Telemetry (detailed in Section E)
• Rights Granted to Site Users
• Retention, installation, modification and
  replacement of its equipment
• Access rights
• Compatibility of Both Parties Equipment
• Decommissioning of an Offtake

• Supplemental Agreement
• Schematic of Connection Facilities - Point of
  Offtake
• Land diagram
• Details Ownership, Equipment Specification of
  Connection Facilities
• Site Services for Site Users

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Section B. Connection Facilities
Typical NTS/LDZ Offtake Configuration
Meters
Flow or pressure control
Distribution Network
Odorant injection
Demarcation Point The Offtake
Majority of equipment at Offtake Site owned and
operated by DN
NTS Feeder
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Section C. Safety and Emergency

• Gas Supply Emergencies
• Development and compliance with Emergency
  Procedures E1, E2, E3
• Participation in procedure testing - planned by
  NTS
• Safe Control of Operation (SCO) Interface
  Procedure
• Safe conduct of works or operations
• Site Emergency Procedures
• Requirements to satisfy legal requirements (eg.
  COMAH, Pipeline Safety Regs)
• Site Safety Rules
• Safe access and operation of personnel on a
  Offtake Site

• Existing Gas Supply Emergency Procedures
• E1 - Network Gas Supply Emergency Procedures
• E2 - Local Gas Supply Emergency Procedures
• E3 - Detailed Internal Procedures to ensure
  compliance with E1/E2

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Section D. Measurement

• Responsibility
• Downstream party responsible for measurement and
  data provision
• Measurement standards
• Measurement data and accuracy - Annex D-1
• Best practice recommendations and technical
  standards Annex D-2
• Validation
• Routine every 12 months at downstream partys
  cost
• Exceptional at upstream partys request
• Fault management
• Failure notification and rectification
• Measurement correction/estimation
• Access to records

• Supplemental Agreement
• Actual uncertainty limits and flow ranges for
  measured parameters

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Section E. Telemetry

• Operational Data Flows
• required by upstream party for safe and efficient
  operation of its System
• Annexes specify standard telemetry signals,
  protocols, resilience
• Telemetry Failure
• process for resolution
• During SOMSA
• DN transmits signals to NTS via satellite
• Post SOMSA
• Rights for NTS to install own telemetry on
  Offtake Site
• DN obligation to provide signals to NTS telemetry
  equipment

• Supplemental Agreement
• Variations to default telemetry signals,
  resilience and protocols

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Section F. Calorific Value

• Responsibility
• DNO obligation under Gas (Calculation of Thermal
  Energy) Regulations to determine daily CV for
  each LDZ based on daily average CVs for LDZ input
  and offtake points
• Daily CV determination
• Basis on which Transco NTS will determine daily
  CVs for DNOs up to 31 March 2007
• CV Shrinkage Costs
• Cooperation to avoid or minimise CV Shrinkage

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Section G. Maintenance

• Defines Relevant Maintenance to be planned and
  co-ordinated
• Safety Relevant Maintenance
• can only be carried out safely if affected
  parties aware
• Flow Relevant Maintenance
• NTS maintenance likely to impact upon ability to
  make gas available for offtake
• Measurement Equipment Maintenance
• Urgent Maintenance
• Maintenance Planning
• 2 year planning cycle - timescales in Annex G-2
• Final programmes in March, updated in September
• Revisions at 5 days notice, except for safety
  reasons subject to payment of other parties works

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Section H. NTS Long Term Planning

• Exchange of demand information
• facilitate production of system development
  statements by the transporters in accordance with
  licence obligations
• Information to be exchanged
• Historic and forecast demand for DM/NDM
  firm/interruptible loads
• Detailed in Annex H-1
• Timescales for information provision

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Section I. NTS Operational Flows

• Provision of Offtake Profile Notices (OPNs)
• Receipt of initial OPN and subsequent revisions
  requested by DN/NTS
• Offtake tolerances
• Within day pressure
• Pressures which Transco NTS will make available
  between Applicable Offtake Pressures at 0600 and
  2200 on reasonable endeavours basis
• Interruption
• Process by which Transco NTS may require
  interruption of LDZ Interruptible Supply Points
• Exchange of information regarding LDZ
  Interruptible Supply Points
• DNO reimbursement to Transco NTS for relevant
  interruption payments it makes to Users
• Demand forecasts
• Provision by DNO to Transco NTS of updated demand
  forecasts

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Section J. LDZ/LDZ Offtake Planning and
Operational Flows

• Provision of Offtake Profile Notices (OPNs)
• Receipt of initial OPN and subsequent revisions
  requested by downstream DNO
• System Planning
• Information provision and timescales
• Setting of Offtake Parameter Values
• Maximum Daily Quantity
• Maximum Offtake Rate
• Minimum Offtake Pressure
• Preparation of Offtake Parameter Statement by
  upstream DNO
• Offtake Parameter Values for LDZ/LDZ Offtakes for
  Gas Years 1-5
• Indicative Offtake Parameter Values for Gas Years
  6-10
• Establishment of rights to use Close offtakes

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Section K. LDZ System Entry Points

• Applicability
• Existing LDZ System Entry Points
• Capacity Allocation by Transco NTS
• Auction Obligated Incremental NTS Entry Capacity
  as per licence obligation
• Auction Incremental NTS Entry Capacity as per DNO
  instruction
• Surrender and Curtailment
• DNO to accommodate nominated flows in accordance
  with capacity held by shippers
• If DNO unable to accommodate
• may instruct NTS to give interruptible
  curtailment notice or buy back
• Section I liabilities incurred by NTS reimbursed
  by DNO

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Section L. Cost Recovery and Invoicing

• Covers arrangements for adhoc recoverable costs
• Invoicing and payment processes

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Section M. Information Flows

• Offtake Communications Document
• Cover Transporter to Transporter information
  exchange
• for purposes of OAD and/or UNC
• Specifies
• information to be exchanged (data, reports,
  notices, ..)
• requirement for information
• Party responsible for information provision
• format of information
• time/frequency of provision
• means of provision

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Section N. General

• Admission, Withdrawal and Termination of Parties
• Supplemental Agreements Execution and Amendment
• upstream party responsible for drafting
• Information and Confidentiality
• Supplemental Agreements confidential
• Liabilities
• Each Party bears its own loss, except where
  otherwise stated
• Dispute Resolution
• Other Legal Boiler Plating

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Offtake Arrangements Document An Overview
Paul Roberts 28h February 2005
ERF02