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Field Services Shipper Handbook

Residue Gas & Product Allocation Prepared by: Gas Accounting

Revision Tracking

Date Created September 2002

Last Updated September 2017

Document No. 5.1

Revision 7.0

Spectra Energy Transmission

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ResidueGas_ProductAllocations VER07 - 2017.docx

Table of Contents

1 Residue Gas & Product Allocation .................................................................................... 3

1.1 Overview .............................................................................................................. 3

1.1.1 Dawson Plant .................................................................................................. 3

1.2 Plant Allocation Cycles ............................................................................................ 3

1.2.1 Plant Allocation Actual Cycle .............................................................................. 4

1.2.2 Plant Allocation Correction Cycle ........................................................................ 4

1.2.2.1 Plant & Receipt Point Corrections ................................................................. 4

1.3 Rounding .............................................................................................................. 4

1.4 Forced Balancing .................................................................................................... 4

1.5 Receipt Point Analysis Determination ........................................................................ 5

1.5.1 Receipt Point Representative Analysis ................................................................. 5

1.5.1.1 Receipt Point Analysis Used at Start Up ........................................................ 6

1.5.2 FWA Gas Analysis at Exemption Receipt Points .................................................... 6

1.5.3 Daily FWA Gas Analysis at Receipt Point .............................................................. 6

1.5.4 Fixed Analysis at a Receipt Point ........................................................................ 8

1.5.5 Calculate a Recombined Analysis at a Receipt Point .............................................. 8

1.5.5.1 Liquid / Gas Ratio ...................................................................................... 8

1.5.5.2 Daily Recombined Analysis at a Receipt Point ................................................ 9

1.5.5.3 Monthly FWA Recombined Analysis at a Receipt Point ................................... 10

1.5.6 Liquid Receipt Points ...................................................................................... 11

1.6 Plant Allocation Adjustments & Exceptions ............................................................... 11

1.6.1 Return Fuel Gas ............................................................................................. 11

1.6.1.1 Raw Return Fuel Gas at a Receipt Point ...................................................... 11

1.6.1.2 Sweet Return Fuel Gas at a Receipt Point .................................................... 12

1.6.2 Pine River’s Kwoen Facility .............................................................................. 13

1.7 Plant-to-Receipt Point Allocation (Step One) ............................................................ 13

1.7.1 Recovery Efficiency Methodology (REM) ............................................................ 13

1.7.1.1 Gas Equivalent of Metered Liquid Volume .................................................... 14

1.7.1.2 Theoretical Propane Product Allocation........................................................ 15

1.7.1.3 Theoretical Butane Product Allocation ......................................................... 15

1.7.1.4 Theoretical Pentanes Product Allocation ...................................................... 16

1.7.1.5 Theoretical Sulphur Product Allocation ........................................................ 16

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1.7.1.6 Calculation of Receipt Point Liquids Gas Equivalent Volume and Energy .......... 16

1.7.1.7 Theoretical Residue Gas Volume Allocation .................................................. 19

1.7.1.8 Theoretical Residue Gas Energy Allocation ................................................... 19

1.8 Actual Residue Gas, Energy & By-product Allocation ................................................. 20

1.8.1 Actual Liquid Product Allocation ....................................................................... 20

1.8.2 Actual Residue Gas Volume & Energy Allocation ................................................. 21

1.8.3 Actual Sulphur Allocation ................................................................................ 21

1.9 Plant Fuel Gas Allocation ....................................................................................... 21

1.9.1 Plant Fuel Gas Allocation ................................................................................. 22

1.9.1.1 Determination of Receipt Point Plant Fuel Gas Allocation ............................... 22

1.9.1.2 Gathering Fuel Gas Allocation at a Receipt Point .......................................... 25

1.10 Production Source Allocation at a Receipt Point (Step Two) ....................................... 26

1.10.1 Receipt Point Daily Proration............................................................................ 26

1.10.2 Theoretical Receipt Point Raw Gas Volume (Sum of Production Source Dailies) ...... 28

1.10.3 Allocation of Receipt Point Values to a Production Source .................................... 28

1.10.3.1 Raw Gas Volume Allocation ....................................................................... 29

1.10.3.2 Residue Volume Allocation ........................................................................ 30

1.10.3.3 Residue Energy Allocation ......................................................................... 30

1.10.3.4 Sulphur Allocation .................................................................................... 31

1.10.3.5 Liquid Product Allocation ........................................................................... 32

1.10.4 H2S & Acid Gas Allocation ................................................................................ 33

1.10.5 Plant Fuel Gas Allocation at a Production Source ................................................ 33

1.10.6 Gathering Fuel Gas Allocation at a Production Source ......................................... 36

1.11 Residue Gas & Product Splits to Shippers ................................................................ 37

1.12 Product Allocation to Marketers .............................................................................. 37

1.13 Residue Outlet Allocation (Step 3) .......................................................................... 38

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1 Residue Gas & Product Allocation 1.1 Overview The allocation process is performed using two logical steps.

Step 1 allocates residue gas (103m3), energy (GJ), and by-products from a BC Pipeline and Field Services Processing Plant to a Receipt Point (RP) within that plant's raw gas gathering system using the Recovery Efficiency Methodology (REM).

Step 2 allocates residue gas (103m3), energy (GJ), and by-products from the RP to the Production Source (PS) on a Prorated Basis with Shipper splits from the PS based on the Production Source Priority Sell Schedule. This step is described in detail in Section 1.10.

Note: Although the plant allocation process is performed in two steps, it consists of the following four distinct processes:

1. residue gas, energy and by-products allocation from a Processing Plant to an RP;

2. residue gas, energy and by-products allocation from an RP to a PS; and 3. residue gas, energy and by-products allocation from a PS to a Shipper. 4. residue energy is allocated by shipper total to plant outlets.

This plant allocation process is used at each of the BC Pipeline and Field Services' processing plants (Fort Nelson Area, Pine River, Sikanni and McMahon). BC Pipeline and Field Services allocates residue gas, energy and by-products from the Plant to the RP, based on the measurement of liquids and gas at the RP.

1.1.1 Dawson Plant The allocation of product at the Dawson facility located in the South Peace area of North Eastern British Columbia is performed using Quorum TIPS software. The following description of the allocation processes do not therefore apply to the Dawson Plant.

1.2 Plant Allocation Cycles The plant allocation process may be run as an Actual or as a Correction Cycle.

The Actual allocation process:

• is run monthly to determine product allocations for the previous production month;

• is required for BC Pipeline and Field Services to produce Shipper invoices by the 20th of each month;

• is run after the 15th of each month

• requires that all RP and PS actuals be received by BC Pipeline and Field Services from the RPO by 9:00 AM CCT of the 16th day of each month unless otherwise specified.

• requires that all BC Pipeline and Field Services Actual Plant Allocations are to be published by the 20th of each month.

The Correction Cycle allocation process:

• is used to process any material adjustments or corrections to a Plant Allocation; and

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• may be run any time after an Actual Plant Allocation has been approved.

Note: Both the Actual and Correction Cycle Allocation results are posted via the Customer Interface (CI).

1.2.1 Plant Allocation Actual Cycle Each RPO must provide the daily month-end actuals for non-EFM RP sites and every PS behind their operated RP, by 9 a.m. Central Clock Time (CCT) on the 16th for the previous month’s production. These reported actuals are used for determining the actual month end allocation and Shipper Invoices.

1.2.2 Plant Allocation Correction Cycle The Plant Allocation Correction Cycle is designed to provide a means of re-running a previously approved Plant Allocation Cycle without impacting the original data. The Correction Cycle includes corrections deemed material. All corrections are applied with the appropriate adjustments to Reliability, Overproduction, and Contract Demand Crediting.

1.2.2.1 Plant & Receipt Point Corrections

Corrections are sometimes required at the Plant and/or RP levels. The adjustments are typically required for the following reasons:

1. raw fuel gas at an RP supplied by the BC Pipeline and Field Services RGT system: • monthly raw fuel gas volume at an RP is adjusted on a daily basis using the raw sales gas

volume; 2. sweet fuel gas at an RP supplied by BC Pipeline and Field Services RGT system:

• plant residue gas and energy is adjusted on a daily basis by the sum of all sweet and gathering fuel gas used;

• allocated residue gas and energy at an RP is adjusted by sweet and gathering fuel gas used on a daily basis;

3. corrections are made to the plant residue gas, energy or by-products due to measurement and/or reporting errors;

4. corrections are made to the raw gas volume at an RP due to measurement or reporting errors; 5. allocation exceptions; and 6. audit recommendations.

1.3 Rounding All reported values in the Plant Allocation will conform to the following rounding rules:

1. round volume in 103m3 to one decimal place; 2. round energy in GJ to whole numbers, no decimal places; 3. round liquid volume in m3 to three decimal places; and 4. round sulphur volume in tonnes to one decimal place.

1.4 Forced Balancing Forced Balancing is used in the final allocation steps to adjust for rounding errors in the allocation of residue gas, energy and by-products at the production source and Shipper levels.

Forced Balancing is applied at the production source level as follows:

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1. The monthly PS values (Residue Volume, Residue Energy, Fuel Gas Volume, Fuel Gas Energy, Sulphur, C3, C4, and C5

+) are force balanced to the monthly plant values. • Residue volume and energy, including Plant Fuel variances, will be applied to PS with the

largest associated volume. • Propane, Butane, Pentanes and Sulphur variances will be applied to PS with the largest

corresponding value, e.g. PS with the largest propane value will have its propane adjusted and the PS with the largest butane value will have its butane adjusted.

• Any residual rounding error after completion of the forced balancing of the PS to RP will again be force balanced. The sum of the monthly variances at the PS levels for Residue volume, energy (including plant fuel), sulphur, C3, C4, and C5

+ will be force balanced to the monthly plant values. Daily variances will be applied to the PS with the largest associated volume, e.g. PS with the largest residue gas volume will have its residue gas volume adjusted and the PS with the largest propane volume will have its propane volume adjusted.

2. The daily Shipper allocated values are force balanced to their respective daily PS values. • Any variances are applied to the Shipper with the largest allocated residue volume. NOTE: Raw, Acid and H2S volumes are not force balanced to the RP; however, these products are force balanced as part of the PS to Shipper process.

1.5 Receipt Point Analysis Determination The analysis at an RP must be calculated before any theoretical calculations or actual allocation of residue gas, energy, and by-products can be determined. The RP analysis process is outlined as follows:

1. The RPO validates and submits a representative Receipt Point Analysis to Volume Accounting for use in the allocation process. This is the primary and desired method for obtaining Receipt Point analyses.

2. If no RP sample is received (see note below regarding RP sample exceptions) by noon on the 1st day of the following month the allocation will use the most recent validated RP analysis submitted to Volume Accounting by the RPO.

Note: FWA (flow weighted average) Exceptions (i.e.: Pine River).

Under certain circumstances SET West will approve a RP analysis compliance exemption. For these RP’s the analysis will be determined by the flow-weighted average (FWA) at the production source level.

3. The FWA process is as follows:

a) calculate the liquid/gas ratio for each RP b) calculate the daily recombined analysis at each RP c) calculate the monthly FWA recombined analysis at each RP

1.5.1 Receipt Point Representative Analysis A representative RP sample will be taken on a predetermined frequency basis. The sampling frequencies are outlined in the RP Sampling Risk Matrix (MES-010).

The validated sample will be submitted by the RPO to SET West Volume Accounting for use in the allocation process by noon on the 1st day of the following production month. Only RPO validated RP samples taken by an approved lab will be accepted for use as a RP representative analysis.

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If an analysis is not received 30 days past the scheduled frequency sampling date a non-compliance letter will be sent out advising the RPO of the situation. The letter will advise the RPO that a sample must be sent to SET West within 30 days. If an RP sample is still not received after this notice period (60 days after original scheduled sampling date) then SET West will close and lock the tap valve effectively shutting in the RP. SET West may, at its sole discretion, allow the RP to continue flowing subject to a proposed plan of corrective action acceptable to SET West (MES-010).

1.5.1.1 Receipt Point Analysis Used at Start Up

Due to the varying nature of the gas analysis profile at an RP during the commissioning, re-commissioning or start up process the following procedures will be followed:

a) SET West will receive well analyses and estimated flow rates from the producer for all the wells upstream of the new RP

b) The representative well analyses upstream of the RP will be entered into the Set West system database c) PSs will be created based on the well analysis reported from the producer for each well d) A FWA will be created for each PS based on the provided well analysis and estimated flow rate data e) The PS FWAs will be used to calculate the RP analysis for the allocation process as per item 1.5.3 in this

document f) RP samples will be taken every month and submitted to SET West for evaluation g) Once three consecutive representative monthly RP samples have been received by SET West the RP

analysis used for the allocation process will be changed from FWA to use the RP sample h) An RP sampling frequency will then be determined from the RP Sampling Risk Matrix (MES-010)

1.5.2 FWA Gas Analysis at Exemption Receipt Points The FWA process outlined below will only be used for those sites that have SET West exemption authorization.

The FWA gas analysis at an Exemption RP is based on the monthly "Fixed Representative" gas analysis for each PS upstream of that RP. Using the RPO daily reported PS actual volumes a FWA gas analysis is calculated for the RP.

As each PS will have a fixed representative gas analysis the PS gas analysis is a complete gas composition in mole fractions. Therefore using the daily PS raw gas volume, a FWA is calculated for each gas component at the RP level. This is done by flow weighting all the PS volumes multiplied by the applicable gas component’s mole fraction for each gas component (including relative density) on a daily basis.

1.5.3 Daily FWA Gas Analysis at Receipt Point The daily FWA gas analysis must be calculated for all RPs. The FWA gas analysis at an RP is based on the monthly "Fixed Representative" gas analysis for each PS upstream of that RP. Using either the RPO daily reported PS actual or estimated volumes, an FWA gas analysis is calculated for each RP.

Each PS will have a fixed representative gas analysis. The PS gas analysis is a complete gas composition in mole fractions. Using the daily PS raw gas volume, an FWA is calculated for each gas component at the RP level by summing all the PS volumes multiplied by the applicable gas component’s mole fraction. This process is done for each gas component (including relative density) on a daily basis.

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RPFWAc1d1 = ((RGVps1 x PSCOMPps1) + (RGVps2 x PSCOMP ps2)) + ... + (RGVpsn x PSCOMPpsn) / V

Where: RPFWAc1d1 = daily FWA value for component one for Day 1 (MolF) RGVps1 = daily raw gas volume for PS1 for Day 1 (103m3) RGVps2 = daily raw gas volume for PS2 for Day 1 (103m3)

. . . RGVpsn = daily raw gas volume for PSn for Day 1 (103m3) PSCOMPps1 = monthly fixed gas component one value for PS1 (MolF) PSCOMPps2 = monthly fixed gas component one value for PS2 (MolF) . . . PSCOMPpsn = monthly fixed gas component one value for PSn (MolF) V = raw gas volume at the RP (103m3)

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The following table gives an example of determining the FWA for He.

Production Source at a Receipt Point

Gas Volume

He

MolF

He

Volume

He

FWA MolF

PS1 100.0 0.0005 0.1

PS2 120.0 0.0009 0.1

PS3 150.0 0.0015 0.2

RP Totals 370.0 0.4 0.0011

Example formula:

0.4/370.0 = 0.0011

1.5.4 Fixed Analysis at a Receipt Point If an RP falls within the definition of a PS, then the FWA analysis at the RP may be obtained from the proportional sampler. This analysis is applied to each day and to each PS associated with that RP. A daily FWA analysis will still be calculated but since all the PSs associated with that RP will have the same analysis, the FWA analysis calculated for the RP is the same as the PS(s).

The proportional sampler and PS analysis determination is defined in detail in the Production Source Grouping Section of the Shipper Handbook.

1.5.5 Calculate a Recombined Analysis at a Receipt Point The Recovery Efficiency Methodology (REM) uses the recombined analysis at the RP for the determination of theoretical RP by-products recovery efficiency factors. In order to calculate the recombined analysis at an RP, both the gas and liquid volumes and their associated compositions must be known. If there is no liquid metering and liquid sampling at an RP, then the recombined analysis is assumed to be that of the gas composition. This also assumes that the liquid volumes measured at the RP will be converted to a gas equivalent volume and added to the raw gas volume to form a recombined raw gas volume. This recombined volume will be used for allocation of plant products and fuel.

1.5.5.1 Liquid / Gas Ratio

The liquid/gas ratio at an RP is required to calculate the recombined analysis at the RP. The liquid/gas ratio is determined by dividing the raw liquid volume (RLV) by the raw gas volume (V) at an RP. This ratio requires the raw liquid and gas volumes to be measured litre units and 103m3 respectively. If there is no liquid metering at an RP, then the liquid/gas ratio is zero.

The liquid/gas ratio is calculated using actual/monthly RP raw volumes.

LGRATIO = RLV / V Where: LGRATIO = actual liquid/gas ratio (ml/m3) RLV = raw liquid volume at the RP (litres) V = raw gas volume at the RP (103m3)

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Note: Reference to RP Raw Gas Volumes, with the exception to this LGRATIO formula, will include the gas equivalent volumes of any RP metered liquids.

1.5.5.2 Daily Recombined Analysis at a Receipt Point

To determine the recombined analysis at the RP, the gas and liquid composition must be converted to common units. Using the liquid/gas ratio, the liquid volume fraction is converted to ml/m3. The ml/m3 determination for the gas phase is calculated using the gas mole fraction and the appropriate GPA (Gas Processors Association) constants. Once the liquid volume and gas fractions have been converted to ml/m3, the values can be summed together to obtain the liquid recombined value for each component. Liquid recombined values are used for determination of the theoretical liquid by-products allocation.

Similarly, the mol/m3 for the gas and liquid analysis are summed to determine the gas recombined mole fraction. Again, the gas recombined mole fraction is used for recovery efficiency calculations, and the theoretical residue gas volume and energy determinations.

Determination of the recombined analysis at an RP is broken down into the following basic steps:

1. Using the liquid/gas ratio and liquid volume fraction (from the laboratory liquid analysis), calculate the ml/m3 for each component.

LIQCOM1 = LGRATIO x LIQVF1 (liquid common unit conversion) Where: LIQCOM1 = ml/m3 for liquid component one at RP1 LGRATIO = actual liquid/gas ratio for RP1 (dimensionless) LIQVF1 = liquid volume fraction for component one at RP1 (VolF) 2. Using the GPA liquid constant (cm3/mol) for each liquid component, calculate the mol/m3 for

each component (ml/m3/Liq Constant = mol/m3). The constant for volume liquid (cm3/mol) is obtained from the GPA Physical Constants publication 2145 SI-03.

3. Calculate the gas component mol/m3 for each component based on the gas Z factor and gas composition mole fraction (obtained from the daily FWA gas analysis). The Z factor is based on the equation provided through AGA Report No. 5.

Mol/m3 = 1 / Z factor / 0.02364 * Raw Gas Mole Fraction Z factor = 1 / [0.99631 + (0.0101 * Raw Gas Density @ RP) – 0.007 * (sum of mole fractions

for He, H2, N2, and CO2)] Mole Volume = 0.02364 at standard condition. 4. Using each gas component's mol/m3 and the GPA volume liquid cm3/mol, calculate the ml/m3

for each gas component. 5. Add the liquid and gas mol/m3 of each component and normalize one (or 100%) to obtain a

result in mole fractions. 6. The recombined analysis is determined by adding the liquid and gas ml/m3 to obtain each

component's ml/m3. The recombined gas and liquid component data is used throughout the Recovery Efficiency Method.

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1.5.5.3 Monthly FWA Recombined Analysis at a Receipt Point

A monthly FWA analysis at an RP is required for the plant-to-RP allocation. Basically, an FWA analysis for each RP is calculated using the daily recombined analysis; see paragraph 8.3.2.2. The monthly FWA analysis is weighted using the daily raw gas volume at an RP.

MRPFWAc1 = ((V1 x RPFWAc1d1) + (V2 x RPFWAc1d2)) +...+ (Vn x RPFWAc1dn) / (V1 + V2 + … + Vn)

Where: MRPFWAc1 = monthly FWA recombined value for component one (MolF) V1 = daily raw gas volume for RP1 for Day 1 (103m3) V2 = daily raw gas volume for RP1 for Day 2 (103m3) . . . Vn = daily raw gas volume for RP1 for Day n (103m3) RPFWAc1d1 = daily recombined value for component one Day 1 (MolF) RPFWAc1d2 = daily recombined value for component one Day 2 (MolF) . . . RPFWAc1dn = daily recombined value for component one Day n (MolF) The same calculation is repeated for each of the recombined gas and liquid components (e.g. He, H2, C1, C2, through to C10

+), including relative gas density and ml/m3 of propane, butane, and pentanes+. The table below gives an example determining the monthly FWA for He.

Receipt Point 1 Gas Volume

He He Volume He

FWA MolF

Day 1 370.0 0.0010 0.4

Day 2 450.0 0.0009 0.4

Day n 285.0 0.0015 0.4

RP Monthly total 1105.0 1.2

Component Weighted Average

0.0011

Example formula:

1.2/1105.0 = 0.0011

The monthly FWA analysis at an RP must be normalized to one (or 100%).

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1.5.6 Liquid Receipt Points With prior approval, SET – West allows for the delivery of raw liquids without an associated gas stream into the McMahon gathering system. A Liquid Receipt Point (LRP) has raw liquid volumes reported in cubic meters (m3) which will converted to a Raw Gas Volume by using the RP Gas Equivalent Factor that is supplied by the lab.

Metered LV (Day 1) x GEF (RP)) = RGV (Day 1)

Metered LV (Day 2) x GEF (RP)) = RGV (Day 2)

Metered LV (Day n) x GEF (RP)) = RGV (Day n)

Where: Metered LV (Day 1) = Daily metered receipt point liquid volume (m3) GEF (RP) = Receipt point gas equivalent factor RGV (Day 1) = Daily receipt point gas equivalent volume (103m3) of liquid volume

Once the LRP is converted to a Gas Equivalent Volume the RP sample mole fractions will be used and the RP will be treated like a standard Raw Gas RP.

1.6 Plant Allocation Adjustments & Exceptions There are a number of adjustments and exceptions that must be handled before the plant allocation process is run. These are addressed below.

1.6.1 Return Fuel Gas Raw fuel gas is provided to the production facility from the RGT system for emergency situations when normal fuel supplies are not available. The raw return fuel gas tap must be located directly downstream of the raw sales gas meter.

There are two different scenarios for return fuel gas that must be dealt with in the plant allocation process. Return fuel gas to an RPO can be supplied either from the RGT system or the sweet gas transmission system (downstream of the plant outlet metering).

1.6.1.1 Raw Return Fuel Gas at a Receipt Point

Raw return fuel gas is any raw gas supplied to a production facility from a tap located downstream of the RP sales gas meter.

Return fuel gas at an RP is subtracted from the raw gas sales meter at the RP, resulting in a net raw gas volume at the RP. The net raw gas volume is used within the plant allocation process.

To properly account for the return fuel gas at an RP, the RPO must provide the return fuel gas volume to BC Pipeline and Field Services as follows:

1. The return fuel gas meter can be connected to the electronic flow measurement (EFM) device at the RP in order to determine a net raw gas volume at the RP. In this case, the EFM device provides both the sales and return fuel gas volumes and the net volume is used in the Plant Allocation.

2. If the return fuel gas meter is not connected to the EFM device, then the RPO must provide a monthly fuel gas volume. If an actual monthly fuel gas volume cannot be provided to BC

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Pipeline and Field Services before the 16th of the month, then an estimate fuel gas volume is required from the RPO before the 16th. • The monthly return fuel gas volume is pro-rated back to each day that there was an actual

sales gas volume. The pro-ration calculation is based on the sales raw gas volume for each day in that month.

V1 = Vs1 - Vf1 Vf1 = Vfuel x (Vs1/VTOTs) VTOTs = Vs1+Vs2 +…+Vsn Where: V1 = raw gas volume at the RP for Day 1 (103m3) Vf1 = the daily theoretical return fuel gas volume at an RP for day1

(103m3) Vfuel = the monthly return fuel gas volume at an RP (103m3) VTOTs = the monthly raw gas volume at an RP (103m3) Vs1 = the daily sales raw gas volume at an RP for Day 1 (103m3) Vs2 = the daily sales raw gas volume at an RP for Day 2 (103m3) . . . Vsn = the daily sales raw gas volume at an RP for Day n (103m3)

1.6.1.2 Sweet Return Fuel Gas at a Receipt Point

If sweet return fuel gas is provided from a point other than the plant outlet. The fuel gas has been sweetened through a secondary BC Pipeline and Field Services facility somewhere upstream of the processing plant. This sweet gas is provided to producers upstream on the secondary facility for continuous fuel gas usage at an RP.

For those RPs that obtain sweet fuel gas from the RGT system, the fuel gas is treated as residue gas and energy, and thus subtracted from the actual residue gas and energy allocated to that RP. To properly account for the RGT gas, the total sweet fuel gas and energy supplied to RPs must also be added to the plant residue gas volume and energy.

SUMFGV = RESFGV1 + RESFGV2 + … + RESFGVn Where: SUMFGV = the total return fuel gas (sweet) volume for all RP for the month

(103m3) RESFGV1= the return fuel gas (sweet) volume for RP1 (103m3) RESFGV2= the return fuel gas (sweet) volume for RP2 (103m3) . . . RESFGVn = the return fuel gas (sweet) volume for RPn (103m3)

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Similarly, the total return fuel gas energy for a month has to be determined since this is added to the plant residue gas and energy.

SUMFGQ = RESFGQ1 + RESFGQ2 + … + RESFGQn Where: SUMFGQ = the total return fuel gas (sweet) energy for all RP for the month

(GJ) RESFGQ1= the return fuel gas (sweet) energy for RP1 (GJ) RESFGQ2= the return fuel gas (sweet) energy for RP2 (GJ) . . . RESFGQn = the return fuel gas (sweet) energy for RPn (GJ) The monthly sweet return fuel gas volume and energy at an RP is subtracted from the allocated residue volume and energy to that RP. Negative values are adjusted to the next day.

1.6.2 Pine River’s Kwoen Facility The Kwoen facility is located upstream of the Pine River processing plant, and acts as a pre-treatment facility. Acid gas is extracted from the supplying streams prior to the gas reaching Pine River for further treatment. From a plant allocation perspective the allocation will occur as a single plant concept and not have a separate allocation for the gas processed at Kwoen. The gas will be treated as just another train flowing to the Pine River processing plant.

The acid gas, which is removed at the Kwoen facility, will be re-injected into depleted gas wells for the purpose of reducing the acid and sulphur content of the gas flowing to Pine River. Shippers contracted at Kwoen will qualify for a reduction in their allocated elemental sulphur produced at the Pine River plant. This reduction in allocated sulphur will be based on their “deemed” amount of H2S volume injected at Kwoen.

This facility is currently off line.

1.7 Plant-to-Receipt Point Allocation (Step One) This section defines the formulas and procedures used to perform monthly allocations of residue gas, energy and by-products from a BC P&FS process plant to an RP. In order to complete the allocations, the following steps must be completed:

1. Recovery Efficiency Methodology (REM) 2. Theoretical Propane Product Allocation 3. Theoretical Butane Product Allocation 4. Theoretical Pentanes Plus Allocation 5. Theoretical Sulphur Product Allocation 6. Theoretical Residue Gas Volume Allocation 7. Theoretical Residue Gas Energy Allocation

1.7.1 Recovery Efficiency Methodology (REM) The REM is based on the calculation of recovery efficiencies for each of the propane, butane and pentanes plus components. Unique recovery efficiencies are calculated for each of these components at each RP based on the RP composition for the particular component and the remaining concentration of the component in the plant residue gas stream. Plant liquids are allocated back to the RP based on REM.

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If a plant does not recover any propane, butane or pentanes plus, the recovery efficiency for each RP will be set to zero. In order to determine the allocation of residue gas and energy, the recovery efficiency for each of the liquid by-products must be determined first. The recovery efficiency factor is used to determine the theoretical amount of by-products that should be allocated to an RP. The actual by-products allocation is based on a pro-rata allocation of the actual plant by-products to the RP using the theoretical allocation amount and total theoretical for all RPs in a raw gas gathering system.

Residue gas and energy allocations are based on pro-rata allocation of the actual plant residue gas and energy after accounting for liquid by-products recoveries and fuel gas shrinkage. Ideally, the recovery efficiency calculation will result in a number between zero and one. However, for instances where the RP component (propane, butane, or pentanes) content is lower than the content of the same component in the plant residue gas, then the recovery efficiency will result in a negative value. Negative recovery efficiencies will result in zero allocation of that component as a liquid by-product to an RP.

1.7.1.1 Gas Equivalent of Metered Liquid Volume

At the start of the monthly allocation process the Gas Equivalent Volume of the liquids metered at a Receipt Point must be calculated on a daily basis and added to the Receipt Point Metered Raw Gas Volume. The Gas Equivalent Factor will be supplied by the Lab calculating the Receipt Point Sample.

Metered RGV (Day 1) + (Metered LV (Day 1) x GEF (RP)) = RGV (Day 1)

Metered RGV (Day 2) + (Metered LV (Day 2) x GEF (RP)) = RGV (Day 2)

Metered RGV (Day n) + (Metered LV (Day n) x GEF (RP)) = RGV (Day n)

Where: Metered RGV (Day 1) = Daily metered receipt point raw gas volume (103m3) Metered LV (Day 1) = Daily metered receipt point liquid volume (m3) GEF (RP) = Receipt point gas equivalent factor RGV (Day 1) = Daily receipt point raw gas volume including liquid gas equivalent

volume (103m3)

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1.7.1.2 Theoretical Propane Product Allocation

To determine the theoretical amount of propane allocated to an RP, the RP recovery efficiency has to be calculated. The formula for determining the theoretical propane allocation and propane recover efficiency is as follows:

APROP = V x C3 ml x EC3

EC3 = 1 – (Z x C3RES) / ((1 - C3RES) x V x C3) Where: APROP = theoretical volume for propane allocation at an RP (litres) V = raw gas volume at the RP (103m3) C3 = recombined propane content at an RP (ml/m3) EC3 = propane recovery efficiency at an RP C3 = recombined propane content at an RP (MolF) Z = volume of components lighter than propane at an RP (i.e., H2 +

He + N2 + C1 + C2) (103m3) C3RES = propane content of plant residue gas (MolF)

1.7.1.3 Theoretical Butane Product Allocation

To determine the theoretical amount of butane allocated to an RP, the RP recovery efficiency for each of iC4 and NC4 must be calculated. The formula for determining the i-butane recovery efficiency and the theoretical i-butane allocation is as follows:

ABUT = AiBUT + AnBUT

AiBUT = V x iC4ml x EiC4

EiC4 = 1 - (W x iC4RES) / ((1 - iC4RES) x V x iC4) Where: AiBUT = theoretical volume for i-butane allocation at an RP (litres) AnBUT = theoretical volume for n-butane allocation at an RP (litres) V = raw gas volume at the RP (103m3) iC4 ml = recombined i-butane content at an RP (ml/m3) EiC4 = i-butane recovery efficiency at an RP iC4 = recombined i-butane content at an RP (MolF) W = volume of components lighter than i-butane at an RP (i.e., H2 +

He + N2 + C1 + C2 + C3 x (1-EC3)) (103m3) iC4RES = i-butane content of plant residue gas (MolF)

If the RP i-butane content is lower than the i-butane content in the plant residue gas, then the recovery efficiency will result in a negative value. This will result in no i-butane liquids being allocated to the RP. An analogous calculation procedure is performed for n-butane. The only difference is that n-butane values replace the i-butane values above and the equation showing the components lighter than n-butane would contain the additional parameter iC4 x (1 – EiC4).

The theoretical allocations calculated for iC4 and nC4 are then summed up for a theoretical butane amount for the RP, i.e., ABUT, where ABUT is the theoretical volume of butane allocated to the RP in litres of product.

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1.7.1.4 Theoretical Pentanes Product Allocation

To determine the theoretical amount of pentanes allocated to an RP, the RP recovery efficiencies must be calculated for each of the iC5 to C10

+ components. Once each component’s theoretical amounts are determined, they are summed to determine the total C5+ amount for that RP (AC5+).

For example, the formula for determining the i-pentane recovery efficiency and the theoretical pentanes (iC5) allocation is shown below. A similar calculation is done for the theoretical allocation and recovery efficiencies for each of nC5 through to C10

+. Note: each component’s equations would ensure that volumes of components lighter than the component being calculated accounted for.

AC5+ = AiC5 + AnC5 + AC6 + AC7 + AC8 + AC9 + AC10

+ Example of Theoretical Allocation and Recovery Efficiency for the iC5 Component AiC5 = V x iC5 ml x EiC5 EiC5 = 1 - (T x iC5RES) / ((1 - iC5RES) x V x iC5) Where: AiC5 = theoretical volume for i-pentane allocation at an RP (litres) V = raw gas volume at the RP (103m3) iC5 ml = recombined i-pentane content at an RP (ml/m3) EiC5 = i-pentane recovery efficiency at an RP iC5 = recombined i-pentane content at an RP (MolF) T = volume of components lighter than i-pentane at an RP (i.e., H2 +

He + N2 + C1 + C2 + C3 x (1-EC3) + iC4 x (1-EiC4) + NC4 x (1 – ENC4)) (103m3)

iC5RES = i-pentanes content of plant residue gas (MolF)

1.7.1.5 Theoretical Sulphur Product Allocation

Allocation of sulphur product is based on the amount of H2S volume at the RP. The theoretical amount of sulphur product at any RP is calculated as follows:

ASUL = V x H2S x 1.356 (theoretical sulphur allocation) Where: ASUL = theoretical sulphur by-product at an RP (tonnes) V = raw gas volume at an RP (103m3) H2S = recombined H2S content at an RP (MolF) 1.356 = conversion factor for tonnes sulphur per 103m3 H2S

1.7.1.6 Calculation of Receipt Point Liquids Gas Equivalent Volume and Energy

The volume of liquids allocated to a Receipt Point is converted to a Gas Equivalent Volume (GEV) and energy value and subtracted from the monthly Receipt Point Theoretical Volume and Energy calculation. The GEV is subtracted from the RP theoretical volume and energy calculations in order to compensate for product received in the liquid allocation process.

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RP Liquids Gas Equivalent Volume 1) RP GEV = C3 GEV + C4 GEV + C5 GEV 2) C3 GEV = C1(Propane) + C2(Propane) + C3(Propane) + iC4(Propane) + nC4(Propane) + … +

C7+

(Propane) C4 GEV = C1(Butane) + C2(Butane) + C3(Butane) + iC4(Butane) + nC4(Butane) + … + C7

+(Butane)

C5 GEV = C1(Pentane) + C2(Pentane) + C3(Pentane) + iC4(Pentane) + nC4(Pentane) + … + C7+

(Pentane) 3) C1(Propane) = C3(RP) x C1 VolF(C3) x C1 RGEF C2(Propane) = C3(RP) x C2 VolF(C3) x C2 RGEF . . . C7

+(Propane) = C3(RP) x C7

+ VolF(C3) x C7 RGEF C1(Butane) = C4(RP) x C1 VolF(C4) x C1 RGEF C2(Butane) = C4(RP) x C2 VolF(C4) x C2 RGEF . . . C7

+(Butane) = C4(RP) x C7

+ VolF(C4) x C7 RGEF C1(Pentane) = C5(RP) x C1 VolF(C5) x C1 RGEF C2(Pentane) = C5(RP) x C2 VolF(C5) x C2 RGEF . . .

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RP Liquids Gas Equivalent Volume (Continued) C7

+(Pentane) = C5(RP) x C7

+ VolF(C5) x C7 RGEF Where: RP GEV = gas equivalent volume of allocated liquids at a Receipt Point (103m3) C3 GEV = gas equivalent volume of allocated Propane at a Receipt Point (103m3) C4 GEV = gas equivalent volume of allocated Butane at a Receipt Point (103m3) C5 GEV = gas equivalent volume of allocated Pentane at a Receipt Point (103m3) n(Propane) = gas equivalent volume of component n in allocated Propane (103m3) n(Butane) = gas equivalent volume of component n in allocated Butane (103m3) n(Pentane) = gas equivalent volume of component n in allocated Pentane (103m3) C3(RP) = allocated propane at a receipt point (ml/m3) C4(RP) = allocated butane at a receipt point (ml/m3) C5(RP) = allocated pentane at a receipt point (ml/m3) nVolF(C3) = monthly analysis of plant propane for component n (VolF) nVolF(C4) = monthly analysis of plant butane for component n (VolF) nVolF(C5) = monthly analysis of plant pentane for component n (VolF) n RGEF =ratio, ideal gas/ liquid for component n

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RP Liquids Gas Equivalent Energy 1) RP GEV(Energy) = ( [ C1(Propane) + C1(Butane) + C1(Pentane)] x HVC1) + ( [ C2(Propane) + C2(Butane) + C2(Pentane)] x HVC2) + ( [ C3(Propane) + C3(Butane) + C3(Pentane)] x HVC3) + ( [ iC4(Propane) + iC4(Butane) + iC4(Pentane)] x HViC4) + . . . ( [ C7

+(Propane) + C7

+ (Butane) + C7

+ (Pentane)] x HVC7)

Where: RP GEV (Energy) = gas equivalent volume of allocated liquids at a Receipt Point

(GJ) n (Propane) = gas equivalent volume of component n in allocated propane at a receipt point n (Butane) = gas equivalent volume of component n in allocated butane at a receipt point n (Pentane) = gas equivalent volume of component n in allocated pentane at a receipt point HVn = MJ/m3, fuel as ideal gas for component n (Heating Value)

1.7.1.7 Theoretical Residue Gas Volume Allocation

Allocation of residue gas and energy to an RP also takes into account the RP composition in relation to the plant residue gas composition. To determine the theoretical amount of residue volume and energy allocated, the RP recovery efficiencies are required along with the recombined raw gas RP analysis. The formula for determining the theoretical residue volume allocation is as follows:

Theoretical Allocation of Residue Volume ARESV = V x (N2 + C1 + C2 + C3 + iC4 + NC4 + iC5 +…+ C10

+) - GEV Where: ARESV = theoretical residue volume allocation to an RP (103m3) V = raw gas volume at the RP (103m3) N2 = recombined nitrogen content at an RP (MolF) C1 = recombined methane content at an RP (MolF) C2 = recombined ethane content at an RP (MolF) . . . C10

+ = recombined decane plus content at an RP (MolF) GEV = allocated liquids gas equivalent volume at an RP (103m3)

1.7.1.8 Theoretical Residue Gas Energy Allocation

In order to allocate the proper heating value (energy) to an RP, the individual heating values for each component in the residue volume formula are added.

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Theoretical Allocation of Residue Energy ARESQ = V x [(N2 x HVN2) + (C1 x HVC1) + (C2 x HVC2) + (C3 x HVC3) + (iC4 x HViC4)

+ (NC4 x HVNC4) + (iC5 x HViC5) + …+ (C10+ x HVC10

+)] – GEV(Energy) Where: ARESQ = theoretical residue gas energy allocation to an RP (GJ) V = raw gas volume at the RP (103m3) N2 = recombined nitrogen content at an RP (MolF) C1 = recombined methane content at an RP (MolF) C2 = recombined ethane content at an RP (MolF) . . . C10

+ = recombined decane plus content at an RP (MolF) HVN2 = heating value for nitrogen (MJ/m3) HVC1 = heating value for methane (MJ/m3) HVC2 = heating value for ethane (MJ/m3) . . . HVC10

+ = heating value for decane plus (MJ/m3) GEV(Energy) = allocated liquids gas equivalent energy at an RP (GJ)

1.8 Actual Residue Gas, Energy & By-product Allocation The actual allocation of residue gas, energy and by-products to an RP is processed after the REM process is complete.

1.8.1 Actual Liquid Product Allocation Actual liquid by-products from the plant are allocated pro-rata to each RP. The equations for determining the actual liquid product allocations are as follows:

Propane C3ACT = (APROP / TAPROP) x C3PLANT Where: C3ACT = actual propane allocated to an RP (m3) APROP = theoretical volume for propane allocation at an RP (litres) TAPROP = the total theoretical volume for propane from all RPs (litres) C3PLANT = actual propane liquid production from plant for month (m3)

Butane C4ACT = (ABUT / TABUT) x C4PLANT Where: C4ACT = actual butane allocated to an RP (m3) ABUT = theoretical volume for butane allocation at an RP (litres) TABUT = the total theoretical volume for butane from all RPs (litres) C4PLANT = actual butane liquid production from plant for month (m3)

Pentanes C5

+ACT = (AC5+ / TAC5

+) x C5+PLANT

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Where: C5+ACT = actual pentanes allocated to an RP (m3)

AC5+ = theoretical volume for pentanes allocated to an RP (litres)

TAC5+ = the total theoretical volume for pentanes from all RPs (litres)

C5+PLANT = actual pentanes liquid production from plant for month (m3)

1.8.2 Actual Residue Gas Volume & Energy Allocation The plant residue gas volume and energy is pro-rated to each RP. Equations for determining the actual allocate volume of residue gas and energy to an RP are as follows:

Residue Gas Volume RESVACT = ((ARESV / TARESV) x RESVPLANT) - RESFGV Where: RESVACT = actual residue volume allocated to an RP (103m3) ARESV = theoretical residue volume allocated to an RP (103m3) TARESV = total theoretical residue volume allocated to all RPs (103m3) RESVPLANT = actual net residue volume from plant (103m3) RESFGV = measured return fuel gas (sweet) volume at an RP (103m3)

Residue Gas Energy RESQACT = ((ARESQ / TARESQ) x RESQPLANT) - RESFGQ Where: RESQACT = actual residue gas energy allocated to an RP (GJ) ARESQ = theoretical residue gas energy allocation to an RP (GJ) TARESQ = total theoretical gas energy allocated to all RPs (GJ) RESQPLANT = actual net residue energy volume from plant (GJ) RESFGQ = measured return fuel gas (sweet) energy at an RP (GJ)

1.8.3 Actual Sulphur Allocation Actual sulphur by-product from the plant is allocated pro-rata to each RP. The equation for determining the actual sulphur by-product allocation is as follows:

SULACT = (ASUL / TASUL) x SULPLANT Where: SULACT = actual sulphur allocated to an RP (tonnes) ASUL = theoretical sulphur to an RP (tonnes) TASUL = total theoretical sulphur allocated to all RPs (tonnes) SULPLANT = actual amount of sulphur produced at plant (tonnes)

1.9 Plant Fuel Gas Allocation Starting the production month of November 2009 Fuel Gas will be allocated and reported using two distinct processes. The process will depend on which of the two following groups a fuel meter falls under:

1) Plant Fuel Gas 2) Gathering Fuel Gas

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Plant Fuel Gas is defined as that which is burned during processing of the raw gas into products. This includes, but is not limited to, the fuel gas used for steam production, compression within the plant, boilers and heaters.

Gathering Fuel Gas is defined as that which is burned in order to bring the raw gas to the plant inlet. This includes, but is not limited to, fuel gas used in the gathering system compressor and booster stations and plant inlet compressor units.

1.9.1 Plant Fuel Gas Allocation The plant fuel gas allocation is based on the RP’s theoretical usage of a functional unit process within a plant and that unit’s amount of fuel usage. There are three functional units defined within a processing plant:

1. Functional unit based on Acid Gas – This process includes Gas treating, Sulphur plant, Sulfreen unit, Drizo/Dehy unit and the Dew point control function.

2. Functional unit based on Pentanes – This process includes pentanes stabilization. 3. Functional unit based on Propane and Butane – This process includes Absorption and

Fractionation.

These plant-specific percentages can be applied to a single formula to allocate plant fuel to each RP.

Since the percent of fuel gas usage of each functional unit process is different at each plant, customized percent fuel usage for each functional unit is unique for each plant. These fuel usage percentages will be periodically reviewed and updated on an as needed basis.

The following table lists the Functional Unit Factors as of December 2014.

Functional Units McMahon Fort Nelson Area

Pine River Sikanni Aitken Creek

Acid Gas 77.92 100.00 100.00 100.00 88.00

Pentanes 1.30 0.00 0.00 0.00 0.00

Propane/Butane 20.78 0.00 0.00 0.00 0.00

Raw 0.00 0.00 0.00 0.00 12.00

Total 100.00 100.00 100.00 100.00 100.00

1.9.1.1 Determination of Receipt Point Plant Fuel Gas Allocation For each RP, the associated plant fuel gas (volume and energy) must be determined for each month based on that plant’s functional units.

When using component content at a receipt point level in any of the allocation equations, the value is always based on the recombined content. The fuel gas usage is determined at an RP based on each of the functional unit’s recombined usage.

Acid Gas Plant Fuel Usage AGVOLrp1 = PFGV x AGPUrp1

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PFGV = Plant Fuel Gas Volume (103m3) AGPUrp1 = AGFF x [(Vrp1 x (H2Srp1 + CO2 rp1)) / AGTOT] AGTOT = [(Vrp1 x (H2Srp1 + CO2 rp1)) + (Vrp2 x (H2Srp2 + CO2 rp2)) + … + (Vrpn x (H2Srpn + CO2 rpn))] Where: AGVOLrp1 = the acid gas fuel volume for RP1 (103m3) AGPUrp1 = acid gas plant fuel usage for RP1 (fraction) AGFF = the acid gas plant fuel factor (percent) AGTOT = the total acid gas volume from all RPs (103m3) Vrp1 = raw gas volume at RP1 (103m3) Vrp2 = raw gas volume at RP2 (103m3) . . . Vrpn = raw gas volume at RPn (103m3) H2Srp1 = the recombined H2S content for RP1 (MolF) H2Srp2 = the recombined H2S content for RP2 (MolF) . . . H2Srpn = the recombined H2S content for RPn (MolF) CO2 rp1 = the recombined CO2 content for RP1 (MolF) CO2 rp2 = the recombined CO2 content for RP2 (MolF) . . . CO2 rpn = the recombined CO2 content for RPn (MolF)

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Propane/Butane Plant Fuel Usage PBVOLrp1 = PFGV x PBPU

PFGV = Plant Fuel Gas Volume (103m3) PBPU = PBFF x [(Vrp1 x (C3 rp1 + C4 rp1)) / PBTOT] PBTOT = [(Vrp1 x (C3 rp1 + C4 rp1)) + (Vrp2 x (C3 rp2 + C4 rp2)) + … + (Vrpn x (C3 rpn + C4 rpn))] Where: PBVOLrp1 = the propane/butane gas fuel volume for RP1 (103m3) PBPU = the propane/butane plant fuel usage for an RP (fraction) PBFF = the propane/butane plant fuel factor (percent) PBTOT = the total propane/butane volume from all RPs (litres) Vrp1 = raw gas volume at RP1 (103m3) Vrp2 = raw gas volume at RP2 (103m3) . . . Vrpn = raw gas volume at RPn (103m3) C3 rp1 = the recombined propane content for RP1 (ml/m3) C3 rp2 = the recombined propane content for RP2 (ml/m3) . . . C3 rpn = the recombined propane content for RPn (ml/m3) C4 rp1 = the recombined butane content for RP1 (ml/m3) C4 rp2 = the recombined butane content for RP2 (ml/m3) . . . C4 rpn = the recombined butane content for RPn (ml/m3)

NOTE: In order to allocate the propane/butane fuel usage at the production source level, the propane/butane fuel consumption must be split to allocate the propane and butane usage separately at the receipt point level.

PVOL rp1 = ((PBVOLrp1 x C3 rp1) / (C3 rp1 + C4 rp1)) BVOL rp1 = (PBVOLrp1 - PVOL rp1) Where: PBVOLrp1 = the propane/butane gas fuel volume for RP1 (103m3) PVOLrp1 = plant fuel propane volume for RP1 (103m3) BVOLrp1 = plant fuel butane volume for RP1 (103m3) C3 rp1 = the recombined propane content for RP1 (ml/m3) C4 rp1 = the recombined butane content for RP1 (ml/m3)

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Pentanes Plant Fuel Usage C5

+VOLrp1 = PFGV x CPUrp1

CPUrp1 = C5+FF x [(Vrp1 x C5

+rp1) / C5

+TOT] C5

+TOT = [(Vrp1 x C5+

rp1) + (Vrp2 x C5+

rp2) + … + (Vrpn x C5+

rpn)] Where: C5

+VOLrp1 = plant fuel pentanes volume for RP1 (103m3) PFGV = plant fuel gas volume (103m3) CPUrp1 = the pentanes plant fuel usage for RP1 (fraction) C5

+FF = the pentanes plant fuel factor (percent) C5

+TOT = the total pentanes volumes from all RPs (litres) Vrp1 = raw gas volume at RP1 (103m3) Vrp2 = raw gas volume at RP2 (103m3) . . . Vrpn = raw gas volume at RPn (103m3) C5

+rp1 = the recombined C5

+ content for RP1 (ml/m3) C5

+rp2 = the recombined C5

+ content for RP2 (ml/m3) . . . C5

+rpn = the recombined C5

+ content for RPn (ml/m3)

1.9.1.2 Gathering Fuel Gas Allocation at a Receipt Point The gathering fuel gas allocation is based on the RP’s raw gas volume. The measured amount of gathering system fuel is prorated to the sum of raw gas at each RP (less any excepted RP’s).

Gathering Fuel Usage RGVOLrp1 = GFGV x RGFUrp1

GFGV = Gathering Fuel Gas Volume (103m3) RGFUrp1 = Vrp1 /(VTOT-VTOTex) VTOT = Vrp1 + Vrp2 + … + Vrpn Where: RGVOLrp1 = the gathering fuel volume for non exempted RP1 (103m3) RGFUrp1 = the gathering fuel usage for RP1 (fraction) VTOT = the total raw gas volume from all RPs (103m3) VTOTex = the total raw gas volume from all RPs exempted from gathering

fuel allocation (103m3) Vrp1 = raw gas volume at RP1 (103m3) Vrp2 = raw gas volume at RP2 (103m3) . . . Vrpn = raw gas volume at RPn (103m3)

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1.10 Production Source Allocation at a Receipt Point (Step Two) The allocation of raw gas, residue gas and energy, liquid by-products, and sulphur is performed once the Plant-to-RP allocation process (Section 7.1) has been validated. The production source allocation process will allocate each of these products to a PS on a pro-rated basis.

1.10.1 Receipt Point Daily Proration The monthly residue gas, energy and by-products must be prorated back to a daily actual. This process uses the daily RP raw gas volumes and RP FWA analysis to prorate each RP monthly actual into a daily actual. The proration factor for monthly to daily actuals is based at the RP on the following:

Raw Gas Volumes – This is based on the estimated daily volume or actual measured daily volume.

Residue Gas Volume – This is based on the daily theoretical residue volume that is calculated using the raw gas volume less the acid gas content (recombined).

Residue Gas Energy – This is based on the daily theoretical residue energy that is calculated using the raw gas volume less the acid gas content (recombined).

Sulphur – This is based on the daily raw gas volume and daily-recombined H2S content.

Propane – This is based on the daily raw gas volume and daily-recombined propane content.

Butane – This is based on the daily raw gas volume and daily-recombined butane content.

Pentanes – This is based on the daily raw gas volume and daily-recombined pentanes content.

Plant Fuel Volume and Energy – This is based on the daily raw gas volume

Gathering Fuel Volume and Energy – This is based on the daily raw gas volume

Example for Daily Residue Gas Volume Determination at a Receipt Point RESVOLd1 = (TRESVOLd1 / TRESTOTm) x RESVACTm TRESVOL d1 = [Vd1 x (1 - (H2Sd1 + CO2 d1))] TRESTOT m = (TRESVOL d1 + TRESVOL d2 + … + TRESVOL dn) Where: RESVOLd1 = allocated residue gas volume for Day 1 (103m3) RESVACTm = monthly allocated residue volume for the RP (103m3) Vd1 = RP raw gas volume for Day 1 (103m3) H2Sd1 = daily recombined H2S content at an RP for Day 1 (MolF) CO2 d1 = daily recombined CO2 content at an RP for Day 1 (MolF) TRESTOT m = monthly theoretical total residue volume (103m3) TRESVOL d1 = theoretical residue volume for Day 1 (103m3) TRESVOL d2 = theoretical residue volume for Day 2 (103m3) . . . TRESVOL dn = theoretical residue volume for Day n (103m3) The monthly allocated residue gas energy for the RP is pro-rated on a daily basis using the same theoretical residue gas volumes as above.

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Example for Daily Residue Gas Energy Determination at a Receipt Point RESENd1 = (TRESVOLd1 / TRESTOTm) x RESACTmj TRESVOL d1 = [Vd1 x (1 - (H2Sd1 + CO2 d1)] TRESTOT m = (TRESVOL d1 + TRESVOL d2 + … + TRESVOL dn) Where: RESENd1 = allocated residue energy for an RP for Day 1 (GJ) RESACTmj = monthly allocated residue energy for the RP (mj/m3) Vd1 = RP raw gas volume for Day 1 (103m3) H2Sd1 = daily recombined H2S content at an RP for Day 1 (MolF) CO2 d1 = daily recombined CO2 content at an RP for Day 1 (MolF) TRESTOT m = total monthly theoretical residue volume (103m3) TRESVOL d1 = theoretical residue volume for Day 1 (103m3) TRESVOL d2 = theoretical residue volume for Day 2 (103m3) . . . TRESVOL dn = theoretical residue volume for Day n (103m3)

Example for Daily Propane Determination at a Receipt Point C3VOLd1 = (Vd1 x C3 d1 / C3TOTm) x C3 PLANT C3TOTm = (Vd1 x C3 d1) + (Vd2 x C3 d2) +…+ (Vdn x C3 dn) Where: C3VOLd1 = allocated propane volume for RP1 for Day 1 (m3) C3TOTm = total theoretical propane for the month at an RP (litres) C3 PLANT = actual propane production from Plant for month (m3) Vd1 = RP raw gas volume for Day 1 (103m3) Vd2 = RP raw gas volume for Day 2 (103m3) . . . Vdn = RP raw gas volume for Day n (103m3) C3 d1 = daily recombined propane content at an RP for Day 1 (ml/m3) C3 d2 = daily recombined propane content at an RP for Day 2 (ml/m3) . . . C3 dn = daily recombined propane content at an RP for Day n (ml/m3) A similar calculation to the one used for propane is completed for butane and pentanes (C4VOLd1 and C5

+VOL d1). The C3 content is replaced with the respective recombined content for butane and pentanes.

Note: C4 = iC4 + NC4 and C5+ =iC5 +NC5 +C6 + C7 +C8 + C9 + C10

+

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Example for Daily Sulphur Determination SVOLd1 = (Vd1 x H2Sd1 / SVTOTm) x SVOLm SVTOTm = (Vd1 x H2Sd1) + (Vd2 x H2Sd2)+ …+ (Vdn x H2Sdn) Where: SVOLd1 = allocated sulphur for RP1 for Day 1 (tonnes) SVTOTm = total theoretical sulphur for the month at an RP (103m3) SVOLm = actual sulphur production from the plant for the month (tonnes) Vd1 = RP raw gas volume for Day 1 (103m3) Vd2 = RP raw gas volume for Day 2 (103m3) . . . Vdn = RP raw gas volume for Day n (103m3) H2Sd1 = daily recombined H2S content at an RP for Day 1 (MolF) H2Sd2 = daily recombined H2S content at an RP for Day 2 (MolF) . . . H2Sdn = daily recombined H2S content at an RP for Day n (MolF) The daily actuals must be calculated for each day within the specified calendar month since these values are used in the PS allocation.

1.10.2 Theoretical Receipt Point Raw Gas Volume (Sum of Production Source Dailies)

The RP Operator (RPO) will supply the PS daily raw gas volume (estimate and actual) to BC Pipeline and Field Services on a daily basis. This is required for each PS attached to an RP within the RPO's responsibility.

A theoretical raw gas volume is determined for each RP based on the sum of the PS daily volumes. The theoretical RP raw gas volume is used in the pro-rata calculation for raw gas volume, residue gas volume and energy, propane, butane, pentanes, H2S and acid. Determination of the RP theoretical raw gas volume is calculated as follows:

TRGVd1 = (RGVps1 + RGVps2 + … + RGVpsn) Where: TRGVd1 = theoretical raw gas volume for RP1 for Day 1 (103m3) RGVps1 = RPO reported raw gas volume for PS1 for Day 1 (103m3) RGVps2 = RPO reported raw gas volume for PS2 for Day 1 (103m3)

. . . RGVpsn = RPO reported raw gas volume for PSn for Day 1 (103m3)

1.10.3 Allocation of Receipt Point Values to a Production Source Each of the values that have been allocated to an RP in Step One are allocated to each PS using daily information (see Section 8.8.1 Receipt Point Daily Pro-ration). Allocation of products is done on a pro-rata basis to each PS. The prorating calculation for each value is as follows:

Raw Gas Volume – based on the daily PS raw gas volumes.

Residue Gas Volume – based on the daily PS raw gas volumes and H2S and CO2 content.

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Residue Gas Energy – based on the daily PS theoretical residue volumes and PS mega-joule factor (heating value).

Propane – based on the daily PS raw gas volume and daily PS propane content.

Butane – based on the daily PS raw gas volume and daily PS butane content.

Pentanes – based on the daily PS raw gas volume and daily PS pentanes.

Sulphur – based on the daily PS raw gas volume and the PS H2S content.

H2S – based on the daily PS raw gas volume and the PS H2S content.

Acid – based on the daily PS raw gas volume and the PS H2S and CO2 content.

1.10.3.1 Raw Gas Volume Allocation

The actual raw gas volume at an RP is allocated to each PS based on a pro-rata calculation using the PS raw gas volumes. The equation for determining the actual amount of raw gas allocated to a PS on any particular day is as follows:

ARGVps1 = (RGVps1 / TRGVd1) x Vd1 Where: ARGVps1 = allocated raw gas volume to PS1 on Day 1 (103m3) RGVps1 = RPO reported raw gas volume from PS1 on Day 1 (103m3) TRGVd1 = RPO reported raw gas volume from all PSs on Day 1 (103m3) Vd1 = measured raw gas volume at the RP for Day 1 (103m3) The allocation of raw gas volume to a PS is calculated for each day in a calendar month for each PS.

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1.10.3.2 Residue Volume Allocation

The actual residue gas volume at an RP is allocated to each PS based on a pro-rata calculation using the PS theoretical residue gas volumes. The equation for determining the actual amount of residue gas allocated to a PS on any particular day is as follows:

Allocated Residue Volume at Production Source RESVOLps1 = [(TRESVps1 / TOTRESd1) x RESVOLd1] – FUELVOL ps1 TRESVps1 = [ARGVps1 x (1.0 - (H2Sps1 + CO2 ps1 + iC4 + NC4 + iC5 + NC5 + C6 + C7 + C8 +

C9 + C10+))] ps1

TOTRESd1 = (TRESVps1 + TRESVps2 + … + TRESVpsn) Where: RESVOLps1 = actual residue volume for PS1 for Day 1 (103m3) RESVOLd1 = allocated residue volume to an RP for Day 1 (103m3) FUELVOLps1 = allocated plant fuel gas volume for Day 1 to a PS (103m3) ARGVps1 = allocated raw gas volume to PS1 on Day 1 (103m3) H2Sps1 = H2S content at PS1 (MolF) CO2 ps1 = CO2 content at PS1 (MolF) iC4 ps1 = iC4 content at PS1 (MolF) NC4 ps1 = NC4 content at PS1 (MolF) iC5 ps1 = iC5 content at PS1 (MolF) NC5 ps1 = NC5 content at PS1 (MolF) C6 ps1 = C6 content at PS1 (MolF) C7 ps1 = C7 content at PS1 (MolF) C8 ps1 = C8 content at PS1 (MolF) C9 ps1 = C9 content at PS1 (MolF) C10

+ ps1 = C10 plus content at a PS1 (MolF)

TOTRESd1 = total theoretical residue gas volume for all PSs for Day 1 (103m3) TRESV ps1 = theoretical residue gas volume for PS1 on Day 1 (103m3) TRESVps2 = theoretical residue gas volume for PS2 on Day 1 (103m3) . . . TRESVpsn = theoretical residue gas volume for PS1 on Day 1 (103m3) The allocation of residue gas volume to a PS is calculated for each day in a calendar month for each PS.

1.10.3.3 Residue Energy Allocation

The actual residue gas energy at an RP is allocated to each PS based on a pro-rata calculation using the PS allocated residue gas heating value. The equation for determining the actual amount of residue energy allocated to a PS on any particular day is as follows:

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Allocated Residue Energy at Production Source RESENps1 = [(RESVOLps1 x HVps1 / TOTENd1) x RESENd1] – FUELEN ps1 TOTENd1 = [(RESVOLps1 x HVps1) + (RESVOLps2 x HVps2) + … + (RESVOLpsn x HVpsn)] Where: RESENps1 = actual residue energy for PS1 for Day 1 (GJ) RESENd1 = allocated residue energy for an RP for Day 1 (GJ) FUELEN ps1 = allocated plant fuel energy for PS1 for Day 1 (GJ) TOTENd1 = total theoretical energy for an RP for Day 1 (GJ) HVps1 = heating value (RES_MEGAJOULE_FACTOR) for PS1 for Day 1

(MJ/m3) HVps2 = heating value (RES_MEGAJOULE_FACTOR) for PS2 for Day 1

(MJ/m3) . . . HVpsn = heating value (RES_MEGAJOULE_FACTOR) for PSn for Day n

(MJ/m3) RESVOLps1 = actual residue gas volume for PS1 for Day 1 (103m3) RESVOLps2 = actual residue gas volume for PS2 for Day 1 (103m3) . . . RESVOLpsn = actual residue gas volume for PSn for Day 1 (103m3) The allocation of residue gas energy to a PS is calculated for each day in a calendar month for each PS.

1.10.3.4 Sulphur Allocation

The allocation of sulphur from the RP to the PS is done on a pro rata basis using the PS raw gas volumes and the H2S molar content at the PS. The H2S molar content is obtained from the Fixed Representative analysis that is defined for a PS.

The allocation is determined as follows:

ASVOLps1 = (ARGVps1 x H2Sps1 / TSVOLd1) x SVOLd1

TSVOLd1 = (ARGVps1 x H2Sps1) + (ARGVps2 x H2Sps2) + … + (ARGVpsn x H2Spsn) Where: ASVOLps1 = allocated sulphur volume for PS1 on Day 1 (tonnes) SVOLd1 = daily sulphur volume for an RP for Day 1 (tonnes) TSVOLd1 = theoretical sulphur from all PSs on Day 1 (tonnes) ARGVps1 = allocated raw gas volume to PS1 for Day 1 (103m3) ARGVps2 = allocated raw gas volume to PS2 for Day 1 (103m3) . . . ARGVpsn = allocated raw gas volume for PSn for Day 1 (103m3) H2Sps1 = H2S content at a PS1 (MolF) H2Sps2 = H2S content for PS2 (MolF) . . . H2Spsn = H2S content for PSn (MolF)

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1.10.3.5 Liquid Product Allocation

Liquid by-products allocated to an RP are pro-rated to PSs based on information supplied by the RPO.

The method for allocating liquids is based on the pro-ration of liquids using the allocated PS raw gas volume and the gas mole fraction (MolF).

Propane Pro-rata Calculation APROPps1 = (ARGVps1 x (C3GASps1 + TPROPd1)) x C3VOLd1

TPROPd1 = (ARGVps1 x C3GASps1) + (ARGVps2 x C3GASps2) + … + (ARGVpsn x C3GASpsn) Where: APROPps1 = actual propane volume allocated to PS1 on Day 1 (m3) TPROPd1 = the total propane volume from all PSs on Day 1 (103m3) C3VOLd1 = actual allocated propane to RP on Day 1 (m3) ARGVps1 = allocated raw gas volume to PS1 on Day 1 (103m3) ARGVps2 = allocated raw gas volume to PS2 on Day 1 (103m3) . . . ARGVpsn = allocated raw gas volume to PSn on Day 1 (103m3) C3GASps1 = propane content at PS1 (MolF) C3GASps2 = propane content at PS2 (MolF) . . . C3GASpsn = propane content at PSn (MolF)

Butane Pro-rata Calculation ABUTps1 = (ARGVps1 x (iC4GAS ps1+ NC4GAS ps1) / TBUT d1) C4VOLd1

TBUTd1 = ARGVps1 (iC4GASps1 + NC4GASps1) + ARGVps2 x (iC4GAS ps2 + NC4GASps2) + … + ARGVpsn x (iC4GAS psn + NC4GASpsn)

Where: ABUTps1 = actual butane volume allocated to PS1 on Day 1 (m3) TBUTd1 = the total butane volume from all PSs on Day 1 (103m3) ARGVps1 = allocated raw gas volume to PS1 for Day 1 (103m3) ARGVps2 = allocated raw gas volume to PS2 on Day 1 (103m3) . . . ARGVpsn = allocated raw gas volume to PSn on Day 1 (103m3) C4VOLd1 = actual allocated butane to RP on Day 1 (m3) iC4GASps1 = iC4 content at PS1 (MolF) iC4GAS ps2 = iC4 content at PS2 (MolF) . . . iC4GASpsn = iC4 content at PSn (MolF) NC4GASps1 = NC4 content at PS1 (MolF) NC4GAS ps2 = NC4 content at PS2 (MolF) . . . NC4GASpsn = NC4 content at PSn (MolF)

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Pentanes Plus Pro-rata Calculation AC5

+ps1 = (ARGVps1 x C5

+GAS) ps1 / TC5+

d1) x C5+VOLd1

TC5+

d1 = ARGVps1 x (C5+GAS ps1) + ARGVps2 x (C5

+GAS ps2) +…+ ARGVpsn x (C5+GASpsn)

Where: AC5+

ps1 = actual pentanes volume allocated to PS1 on Day 1 (m3) TC5

+d1 = the total pentanes volume from all PSs on Day 1 (103m3)

C5+VOLd1 = actual allocated pentanes to RP on Day 1 (m3)

ARGVps1 = allocated raw gas volume to PS1 on Day 1 (103m3) ARGVps2 = allocated raw gas volume to PS2 on Day 1 (103m3) . . . ARGVpsn = allocated raw gas volume to PSn for Day 1 (103m3) C5

+GASps1 = C5+NC5+C6+C7+C8+C9+C10+ content at PS1 (MolF)

C5+GAS ps2 = C5+NC5+C6+C7+C8+C9+C10

+ content at PS2 (MolF) . . . C5

+GASpsn = C5+NC5+C6+C7+C8+C9+C10+ content at PSn (MolF)

1.10.4 H2S & Acid Gas Allocation The amount of H2S and Acid Gas allocated to a PS is based on the allocated PS raw gas volume and PS fixed analysis factor for H2S and CO2.

The equation to determine the amount of allocated H2S at a PS on a daily basis is as follows:

TH2S ps1 = RGVps1 x H2Sps1 Where: TH2Sps1 = H2S allocated to PS1 on Day 1 (103m3) RGVps1 = raw gas volume to PS1 for Day 1 (103m3) H2S ps1 = the monthly H2S PS fixed MolF for PS1

The equation to determine the amount of Acid Gas to allocate to PS1 on Day 1 is:

TACID ps1 = RGVps1 x (H2Sps1 + CO2 ps1) Where: TACIDps1 = actual acid gas allocated to PS1 for Day 1 (103m3) RGVps1 = raw gas volume to PS1 for Day 1 (103m3) H2Sps1 = the monthly H2S PS fixed MolF for PS1 CO2 ps1 = the monthly CO2 PS fixed MolF for PS1

1.10.5 Plant Fuel Gas Allocation at a Production Source The allocation of sweet fuel gas is performed once the Plant Fuel Gas Allocation to RP has been validated. The production source allocation process allocates each of the daily plant fuel gas usage volumes to a PS on a pro-rated basis. Each volume calculated for a functional unit at an RP is pro-rated based on the daily PS raw gas volume, PS analysis and PS heating value. The sum of the functional unit volumes will then be subtracted from the actual daily residue volume allocated to a PS.

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Fuel Gas Volume Allocation Based on Functional Units at Production Source (Daily) FUELVOL ps1 = [FRGVOLps1 + FAGVOLps1 + FPVOLps1 + FBVOLps1 + FC5

+VOLps1] Where: FUELVOLps1 = allocated plant fuel gas volume to PS1 (103m3) FRGVOLps1 = pro-rated plant fuel raw gas volume for PS1 (103m3) FAGVOLps1 = pro-rated plant fuel acid gas volume for PS1 (103m3) FPVOLps1 = pro-rated plant fuel propane volume for PS1 (103m3) FBVOLps1 = pro-rated plant fuel butane volume for PS1 (103m3) FC5

+VOLps1 = pro-rated plant fuel pentanes volume for PS1 (103m3)

Raw Gas Fuel Usage (Daily) FRGVOLps1 = FRGVOLrp1 x [ARGVps1 / ARGTOT] ARGTOT = ARGVps1 + ARGVps2 + … + ARGVpsn Where: FRGVOLps1 = pro-rated plant fuel raw gas volume for PS1 (103m3) FRGVOLrp1 = plant fuel raw gas volume for RP1 (103m3) ARGTOT = the total allocated raw gas volume from all PSs (103m3) ARGVps1 = raw gas volume at PS1 (103m3) ARGVps2 = raw gas volume at PS2 (103m3) . . . ARGVpsn = raw gas volume at PSn (103m3)

Acid Fuel Gas Usage (Daily) FAGVOLps1 = FAGVOLrp1 x [(ARGVps1 x (H2Sps1 + CO2 ps1)) / ACIDTOT] ACIDTOT = [(ARGVps1 x (H2Sps1 + CO2 ps1)) + (ARGVps2 x (H2Sps2 + CO2 ps2)) + … +

(ARGVpsn x (H2Spsn + CO2 psn))] Where: FAGVOLps1 = pro-rated plant fuel acid gas volume for PS1 (103m3) FAGVOLrp1 = plant fuel acid gas volume for RP1 (103m3) ARGVps1 = raw gas volume at PS1 (103m3) ARGVps2 = raw gas volume at PS2 (103m3) . . . ARGVpsn = raw gas volume at PSn (103m3) H2Sps1 = H2S content for PS1 (MolF) H2Sps2 = H2S content for PS2 (MolF) . . . H2Spsn = H2S content for PSn (MolF) CO2 ps1 = CO2 content at PS1 for month (MolF) CO2 ps2 = CO2 content at PS2 for month (MolF) . . . CO2 psn = CO2 content at PSn for month (MolF) ACIDTOT = the total acid gas volume from all PSs (103m3)

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Propane Fuel Gas Usage (Default) (Daily) FPVOLps1 = [FPVOLrp1 x [(ARGVps1 x C3 ps1)/ PTOT] PTOT = [(ARGVps1 x C3 ps1) + (ARGVps2 x C3 ps2) + … + (ARGVpsn x C3 psn)] Where: FPVOLps1 = pro-rated plant fuel propane volume for PS1 (103m3) FPVOLrp1 = plant fuel propane volume for RP1 (103m3) ARGVps1 = raw gas volume at PS1 (103m3) ARGVps2 = raw gas volume at PS2 (103m3) . . . ARGVpsn = raw gas volume at PSn (103m3) C3 ps1 = the propane content for PS1 (MolF) C3 ps2 = the propane content for PS2 (MolF) . . . C3 psn = the propane content for PSn (MolF) PTOT = the total propane volume from all PSs (103m3)

Butane Fuel Gas Usage (Daily) FBVOLps1 = [FBVOLrp1 x [(ARGVps1 x C4 ps1)/ BTOT] BTOT = [(ARGVps1 x C4 ps1) + (ARGVps2 x C4 ps2) + … + (ARGVpsn x C4 psn)] Where: FBVOLps1 = pro-rated plant fuel butanes volume for PS1 (103m3) FBVOLrp1 = plant fuel butanes volume for RP1 (103m3) BTOT = the total butane volume from all PSs (103m3) ARGVps1 = raw gas volume at PS1 (103m3) ARGVps2 = raw gas volume at PS2 (103m3) . . . ARGVpsn = raw gas volume at PSn (103m3) C4 ps1 = the butanes content for PS1 (MolF) C4 ps2 = the butanes content for PS2 (MolF) . . . C4 psn = the butanes content for PSn (MolF)

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Pentanes Fuel Gas Usage at PS (Daily) FC5

+VOLps1 = FCVOLrp1 x [ARGVps1 x C5+

ps1 / C5+VTOT]

C5+TOT = [(ARGVps1 x C5

+ps1) + (ARGVps2 x C5

+ps2) + … + (ARGVpsn x C5

+psn)]

Where: FC5+VOLps1 = pro-rated plant fuel pentanes volume for PS1 (103m3)

FC5+VOLrp1 = plant fuel pentanes volume for RP1 (103m3)

C5+TOT = the total pentanes volume from all PSs (103m3)

ARGVps1 = raw gas volume at PS1 (103m3) ARGVps2 = raw gas volume at PS2 (103m3) . . . ARGVpsn = raw gas volume at PSn (103m3) C5

+ps1 = the pentanes content for PS1 (MolF)

C5+

ps2 = the pentanes content for PS2 (MolF) . . . C5

+psn = the pentanes content for PSn (MolF)

Fuel Gas Energy Allocation Equation Allocate plant fuel gas energy by multiplying the composite plant fuel gas heating value by the allocated fuel gas volume at each RP. FUELEN ps1 = FUELVOL ps1 x PFGQ / PFGV Where: FUELEN ps1 = allocated plant fuel energy for PS1 for Day 1 (GJ) FUELVOL ps1 = allocated plant fuel gas volume for Day 1 to a PS (103m3) PFGQ = total plant fuel gas energy for Day 1 (GJ) PFGV = total plant fuel gas volume for Day 1 (103m3)

Note: The allocated plant and gathering fuel volumes and energy are used to calculate the actual residue volume and energy at each PS.

1.10.6 Gathering Fuel Gas Allocation at a Production Source The allocation of gathering fuel gas is performed once the Gathering Fuel Gas Allocation to RP has been validated. The production source allocation process allocates each of the daily gathering fuel gas usage volumes to a PS on a pro-rated basis. Each volume calculated at an RP is pro-rated based on the daily PS raw gas volume. This volume will then be subtracted from the actual daily residue volume allocated to a PS (this is in addition to the plant fuel being subtracted).

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Gathering Fuel Usage (Daily) FGVOLps1 = FGVOLrp1 x [RGVps1 / RGTOT] RGTOT = RGVps1 + RGVps2 + … + RGVpsn Where: FGVOLps1 = pro-rated gathering fuel raw gas volume for PS1 (103m3) FGVOLrp1 = gathering fuel raw gas volume for RP1 (103m3) RGTOT = the total allocated raw gas volume from all PSs (103m3) RGVps1 = raw gas volume at PS1 (103m3) RGVps2 = raw gas volume at PS2 (103m3) . . . RGVpsn = raw gas volume at PSn (103m3)

Gathering Fuel Gas Energy Allocation Equation Allocate gathering fuel gas energy by multiplying the composite gathering fuel gas heating value by the allocated gathering gas volume at each RP. GATHEN ps1 = GATHVOL ps1 x GFGQ / GFGV Where: GATHEN ps1 = allocated gathering fuel energy for PS1 for Day 1 (GJ) GATHVOL ps1 = allocated gathering fuel gas volume for Day 1 to a PS (103m3) GFGQ = total gathering fuel gas energy for Day 1 (GJ) GFGV = total gathering fuel gas volume for Day 1 (103m3)

1.11 Residue Gas & Product Splits to Shippers For each PS upstream of an RP one shipper will be assigned by the RPO. The initial shipper will be provided with the RPOs request for a new PS. Changes to a Shipper at a PS will be entered by the RPO using the on line screen via CI.

1.12 Product Allocation to Marketers For each Shipper at a PS, the RPO may assign a Marketer for each of the by-products allocated through the Plant Allocation. That is, Marketers may be assigned for each of propane, butane, pentanes and sulphur. If an RPO does not assign a Marketer for any or all the by-products, they are allocated directly to the Shipper.

For the purpose of assigning Marketers, the Shipper (through the RPO) will assign Marketers by PSs that they hold service at. Marketers are identified by the RPO through the Marketer Assignment Schedule that is accessed through CI. The RPO may change the Marketer at any time for any or all by-products but a new Marketer Assignment Schedule must be submitted to BC Pipeline and Field Services for these changes. New Marketer Assignment schedules become effective on the first of the following month and must be submitted at least five (5) business days to the effective date.

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1.13 Residue Outlet Allocation (Step 3)

There is a further step for the allocation to perform when there is more than one outlet at a gas facility. This step will allocate residue gas at the total shipper level to one (or both) of the plant outlets. This process takes place after the plant products have been allocated to the RP, PS and Shipper.

Currently only the Ft Nelson Area has dual outlets

The estimated total residue volume and energy determined for each shipper are allocated to either or to both T-North on the Spectra system or to Komie East on the TCPL system. The residue gas will be allocated to the Ft Nelson North Plant by the following steps:

1) Allocate Primary 2) Allocate Secondary 3) Allocate IT 4) Allocate Swing 5) Allocate to Ft Nelson North Plant Contract Holders 6) Allocate to Physical Shippers 7) Allocate to All Shippers

The allocation to the Ft Nelson Gas Plant (T-North) will be the difference between the allocated shipper totals and the amount allocated to the Ft Nelson North Plant.

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