Quality Bank Services
The purpose of the quality bank is to mitigate material increases or decreases in each shipper’s respective oil value due to the commingling of oil in the pipeline common stream.
The quality bank charges or pays each shipper depending on the comparison of the quality of the pipeline common stream and the quality of each shipper’s oil. Each shipper may be required, as a condition of tendering its oil, to participate in the gravity and sulfur quality bank depending on the pipeline’s requirements.
API gravity and sulfur are the oil quality parameters used to determine the relative value of each shipper’s oil received and delivered into and out of a common stream pipeline. ASL currently manages both price based and table based quality banks.
The ASL software is of modular design which allows for the customization of your quality bank and business reports to meet the policies and requirements of your business model. The software calculates prior period adjustments in the current month and provides the shipper with documentation detailing the correction.
ASL’s complete quality bank services include: data collection, bank processing, invoicing, and final settlement between the shippers. ASL offers the pipeline operator monthly business reports which can include: aging receivables and payables reports, operational data for receipts and deliveries, and gravity, sulfur, and volume comparisons.
ASL can also provide a “What If” scenario for new shippers or new production entering a common stream pipeline. The information provided from the “What If,” is a valuable tool in making business decisions and understanding the cost of shipping in a common stream pipeline.
ASL currently provides quality bank service to numerous companies, including, but not limited to: BP, Crimson Gulf, Crimson California Pipeline, Enterprise Products Partners, Energy XXI, and Gravcap, Inc.