ATTACHMENT_4_-_Quality_Control_Plan.pdf

ATTACHMENT 4

REFINED PRODUCT RESERVE

QUALITY CONTROL PLAN (EXAMPLE)

ABC Oil Company

QUALITY CONTROL PLAN

Contract Number:

ABC Oil Company Representative:

Quality & Quantity Inspection Company:

Contents A. Organization Chart w/phone numbers

B. Facility Schematic

C. Procedures

1. General Quality & Quantity Procedures. The contract between ABC Oil Company and the DOE, establishing a SPR, is intended to support rapid distribution of product once activated. The contracted quantity meeting specification requirements will be maintained as commingled storage. ABC Oil Company will use standard commercial practices to receive, store, and distribute DOE products.

2. Receiving. The receiving of DOE product into storage is two-fold, initial identification and continuous flow through commingled storage. The initial receipt will be accomplished using our standard commercial practices detailed below. ABC Oil Company will give 3-days’ notice to the DOE Program Office when we are ready to receive product as specified by contract. Product meeting specification will then be identified to the DOE Program Office as available for inspection. Standard Commercial Procedure for Receiving Product :

Before Product Receiving:

a. Ensure adequate ullage is available in receiving tanks.

b. Review shipper’s certification to validate product meets specification requirements.

c. Isolate receipt tank(s) and place on shipping hold.

d. Check receiving pipelines to ensure fill quality and alignment.

e. Obtain hand-line gauge of receipt tank(s), in accordance with API MPMS procedures.

f. Determine receipt tank(s) temperature, in accordance with API MPMS

During Product Receiving:

a. Verify custody transfer sampler is operational.

b. Check side gauge on receiving tank(s) initially and every 2-hours thereafter.

c. If receiving tender into more than one tank, open second tank before closing first tank

d. Prohibit anyone from climbing tank until completion of shipment.

e. Inject required dye into moving stream as product enters facility.

f. Prohibit shipment from receipt tank(s) until re-certification is accomplished.

g. Maintain communication with shipper’s operator during entire receipt operation.

After Product Receiving:

a. Wait at least 30-minutes before hand-line gauging to allow for product relaxation.

b. Obtain hand-line gauge of receipt tank(s), in accordance with API MPMS

c. Determine receipt tank(s) temperature, in accordance with API MPMS

d. Obtain an upper, middle, and lower sample from receipt tank(s), in accordance with API MPMS procedures.

e. Calculate receipt quantity using “up-gauge” and shipper’s quantity measurements.

f. Prohibit shipment from receipt tank(s) until re-certification is accomplished.

With respect to the initial fill of product identified for DOE storage, ABC Oil Company will prepare a composite sample of the upper, middle, and lower spot samples and make available for full specification analysis. This product test report will accompany an invoice that states quantity and quality of product maintain in storage specified in the contract between DOE and ABC Oil Company.

Normal company operations are to receive and ship product on a continuous basis. DOE stored product will lose its identity as it is classified as commingled product until valid orders are placed for sale.

3. Storage & Handling

Products flowing through the terminal will be managed on a first in, first out basis. DOE stored product will be maintained using standard commercial practices. CBOB / RBOB will be dyed in accordance with IRS statute guidance.

Products received into storage will be tested and released for distribution as soon as practical.

The storage tanks holding any DOE destined product will be drained of bottom water and sediment weekly. Particular attention will be paid to removing water from storage tanks to prevent the growth of microorganisms and formation of hydrogen sulfides. ABC Oil Company will notify the DOE Program Office if the addition of biocides is necessary to treat product.

Product in storage at ABC Oil Company’s terminal will be held in storage until re-certification for quality is accomplished. ABC Oil Company will review the shipper’s quality documents to ensure product meets specifications. The product will then be sampled in accordance with the American Petroleum Institute’s (API) procedures for a comparative analysis. CBOB / RBOB will be tested for the following properties:

a. API Gravity, appearance, color and visual for sediment and water

The results of this analysis will be compared to the shipper’s documents and the specification requirements. If test results indicate contamination may have occurred product shall be placed in a “Quality Hold” status pending re-sampling and re-testing. If the results of testing exceed the reproducibility limits established by test method, a full specification analysis shall be performed before release of product is authorized. ABC Oil Company will notify DOE anytime that re-certification testing indicates possible contaminated product that may be destined for sale to DOE.

ABC Oil Company will maintain an accurate inventory of products stored, receipts during the month, and at its terminal. ABC Oil Company will maintain an inventory reflecting receipts and sales of product stored at the terminal. A separate inventory of product maintained as line fill, tank bottoms, and manifolds will be maintained and not considered part of the commingled product in storage available for distribution to DOE.

ABC Oil Company will prepare a weekly inventory certification report stating the quantity of product available for distribution under this contract. ABC Oil Company considers DOE a primary customer of its commingled inventory and will always maintain contracted product storage available for distribution.

4. Loading & Shipping

No product identified as DOE inventory will be shipped from the terminal without written receipt of order from the DOE Program Office or the Contracting Officer.

All DOE identified inventory products loaded or shipped from our terminal shall meet the specification requirements identified in the contract.

It is recognized the intent of this contract is to store CBOB / RBOB product meeting specifications. This product will then be sold on the open market. The title will transfer from DOE to the purchaser as product passes through the loading header or pipeline connection. It will be the purchaser’s responsibility to ensure conveyance acceptability. For all modes of shipment, ABC Oil Company will provide a certificate of conformance stating that product meets the specification and a shipping document attesting to the quantity transferred.

Tank Truck Loading:

Tank trucks loaded from ABC Oil Company’s terminal must be “pre-approved”.

The approval process is to ensure adequate training of driver/loader, proper equipment used for transport, adequate insurance coverage, etc. Tank trucks are loaded using standard commercial practices. The purchaser’s representative, the driver, is responsible to inspect conveyance and load product safely. ABC Oil Company will provide a meter ticket of quantity and Certificate of Quality for each tank truck loaded.

ABC Oil Company will maintain a summary record of deliveries for each purchaser. This record will indicate the quantities delivered and quantity of product (outstanding balance against delivery order) authorized by DOE.

Tank trucks will only be loaded from re-certified stocks. ABC Oil Company will determine quantity of product loaded onto Tank trucks by meter. The meters will be calibrated in accordance with State guidelines and API Chapter 6-2. Meter tickets will be used at the loading rack to account for net quantities loaded into the conveyance.

Pipeline Operations:

Pipeline movements from the ABC Oil Company’s terminal will be accomplished using commercial practices. The owner, receiver, shipper, and the transporter will all agree as to the pipeline tender.

Marine Vessel Loading

Vessels loaded from the ABC Oil Company terminal shall be pre-approved and shall follow established industry policy and procedures.

5. Sampling & Testing

6. Calibration

7. Records & Reports

8. Corrective Action

D. API Manuals:

API Chapter 3-1a, Tank Gauging, Standard Practice for Petroleum Products

API Chapter 8-1, Sampling, Manual Method for Petroleum Products

API Chapter 4-1, Proving Systems

API Chapter 6-2, Loading Rack Metering Systems

API Chapter 7-1, Temperature Determination, Static Mercury-in-Glass

API Chapter 17-1, Guideline for Marine Cargo Inspection

API Chapter 17-5, Guideline for Marine Cargo Analysis

API Chapter 17-6, Guideline for Determining Fullness of Pipelines

API Chapter 17-8; Guideline for Pre-Loading Inspection of Marine Cargo