Blending Shrinkage

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Volumes that are shrunk off the Battery  Oil due to the blending of products of different densities can be entered in Qbyte Metrix and reported to Petrinex. This functionality is only available for batteries in provinces that are using Petrinex. This means it is available for batteries in Alberta, Saskatchewan, Manitoba (when the Production Date is greater than or equal to MB Petrinex Implementation Date) and British Columbia (when Production Date is greater than or equal to BC Petrinex Implementation date).

Blending Shrinkage disposition volumes are included in delivery-based primary retrieval types for Facility Charges, but are not included in sales-based primary retrieval types. Sales volumes and values used in Royalty Obligations do not include  Blending Shrinkage  disposition volumes.

Oil Balance

Oil Disposition

• Use the Blending Shrinkage disposition type.

  • Destination fields and Report As Product will not be visible for Blending Shrinkage dispositions.

  • You can take advantage of the Delivery Sequence# to create multiple dispositions for Blending Shrinkage due to different densities.  
    Note: These will be accumulated and reported as one volume on the Facility Volumetric report for the battery.

  • The volume entered refers to the shrinkage volume.

• Must have a Market Master.

Market Master

For every Blending Shrinkage disposition, a matching Market Master must be created. When a Blending Shrinkage disposition is created in the Market Master, a corresponding Purchaser record is automatically created with a Purchaser Type of Loss – Fire, Theft, Spill, or Shrinkage.

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Petrinex Submissions

Volumetric (at Battery)

• Blending Shrinkage dispositions are reported as product COND and activity SHR with a blank From/To Facility.

Pipeline Splits

• Blending Shrinkage dispositions will not be reported on the Oil Pipeline Split submission.

Battery SAF/OAF

• Blending Shrinkage dispositions will not be reported on the SAF/OAF submission.

Oil Valuation RTP

• Blending Shrinkage dispositions will not be reported on the Oil Valuation RTP submission.

Financial Entry Definitions

Blending Shrinkage dispositions have their own Entry Definition so that they can be booked differently than ordinary Oil sales.

• Product = OIL

• General Type = LOSS - Loss due to Fire, Theft, or Spill

• Specific Type = SHR - Shrinkage

As with any Entry Definition, it can be entered for all provinces (Province left blank) or it can be entered for a specific province.

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Example 1 – Facility Charge Calculation

Battery Receives 55.0 and sells 53.8, and the rest 1.2 is Shrinkage.

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Facility Charges using a Primary Type of Deliveries of Oil uses the Total Delivery Volume of 55.0.

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Facility Charges using a Primary Type of Sales uses only the Sales Volume (not including the shrinkage) 53.8.

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Example 2 – Royalty Calculation

Battery Receives 55.0 and sells 53.8, and the rest 1.2 is Shrinkage.

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The Sales Volume and Value used in Royalty Obligations will not include the Shrinkage Volume of 1.2.