Course 07 of 20 · Crude Oil Desk Academy

Pipeline, Terminal and Storage Access

Stage B, Commercial execution. Level 4 of 10.

Tariffs, nominations, proration, quality banks, throughput agreements and storage leases as contracted rights.

127 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 02, Course 06

Enrol or enquire See the 127 chapters
How a chapter is sized

One chapter is one idea taken to the point of use

Each chapter is a single self-contained explainer of 8 to 10 narrated minutes, covering one idea to the point where you can use it.

Chapters run in order. Each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 127 chapters

Open any module for its full chapter list, in teaching order.

M0 Infrastructure as a Contracted Right Ch 1-11
  1. Infrastructure Rights and Physical Deliverability
  2. The Three Access Contracts
  3. Common Carrier and Contract Carrier
  4. Regulated and Unregulated Access Regimes
  5. Who the Shipper Actually Is
  6. Title, Custody and Risk Along the Route
  7. Capacity as a Commercial Asset
  8. Why Access Rights Are Scarce
  9. What an Access Failure Costs
  10. Reading an Infrastructure Map Commercially
  11. How This Programme Fits the Wider Academy
M1 How a Pipeline Tariff Is Built Ch 12-24
  1. What a Tariff Document Actually Contains
  2. Cost of Service, Part One: The Rate Base
  3. Cost of Service, Part Two: Return and Operating Expense
  4. Dividing Revenue Requirement by Volume
  5. Distance, Zones and Uniform Rates
  6. Committed and Uncommitted Rates
  7. Incentive and Index-Escalated Rates
  8. Negotiated and Settlement Rates
  9. Surcharges and Pass-Through Items
  10. Loss Allowance as a Tariff Term
  11. Liability, Indemnity and the Limits of Carrier Responsibility
  12. Reading a Tariff for What It Permits
  13. A Worked Rate Comparison Across Two Routes
M2 The Nomination Cycle Ch 25-36
  1. What a Nomination Commits You To
  2. The Nomination Calendar
  3. Building a Nomination from a Supply Position
  4. Origin, Destination and Routing Elections
  5. Grade Election and the Stream You Join
  6. Confirmation, Scheduling and the Operational Plan
  7. Changing a Nomination After Cut-Off
  8. Overdelivery and Underdelivery
  9. Imbalance, Cash-Out and Penalty Mechanics
  10. Nominating Without a Confirmed Barrel
  11. Competing Shippers and Scheduling Conflicts
  12. A Worked Monthly Cycle, Beginning to End
M3 Proration and the Gaming It Invites Ch 37-48
  1. When Requests Exceed What the Line Can Move
  2. What Allocation Does to Your Barrels
  3. History-Based Allocation
  4. Equal Division and Hybrid Methods
  5. The New Shipper Problem
  6. Building an Allocation Factor, Worked
  7. Inflated Requests and Phantom Volume
  8. Why Inflation Is Individually Rational
  9. Anti-Gaming Provisions and Penalties
  10. Verification, Audit and Proof of Supply
  11. Selling Into a Prorated Route
  12. Holding a Position Under Chronic Constraint
M4 Common Stream and Commingling Ch 49-59
  1. Why Systems Mix Barrels
  2. What a Common Stream Is
  3. Batching as the Alternative
  4. Interface, Transmix and the Cut Decision
  5. The Stream Specification
  6. Losing the Identity of Your Grade
  7. Delivering Good Oil and Receiving Average Oil
  8. Segregation and What It Costs
  9. Blending You Did Not Choose
  10. Stream Drift Across a Month
  11. A Worked Commingling Case
M5 Quality Banks and the Settlement They Produce Ch 60-72
  1. Why a Compensation Mechanism Must Exist
  2. What a Quality Bank Is and Is Not
  3. The Valuation Basis Problem
  4. Gravity-Based Mechanisms
  5. Sulphur and Contaminant Adjustment
  6. Distillation-Based Mechanisms
  7. Full Yield-Value Mechanisms
  8. Choosing the Reference Prices
  9. Constructing a Settlement, Part One: The Pool Average
  10. Constructing a Settlement, Part Two: Your Own Position
  11. Reading a Settlement Statement
  12. Challenging a Charge
  13. Using Bank Economics to Choose a Grade
M6 Linefill, Inventory and Loss Ch 73-82
  1. What Linefill Is
  2. Why the Line Must Stay Full
  3. Your Share and How It Is Set
  4. Acquiring Linefill on Entry
  5. Recovering Linefill on Exit
  6. The Cash Consequence of Resident Volume
  7. Tank Bottoms and Heel
  8. Accounting for Inventory You Cannot See
  9. Loss, Gain and How Shrinkage Is Shared
  10. A Worked Reconciliation
M7 Tank Farms, Leases and Real Capacity Ch 83-94
  1. What a Storage Lease Grants
  2. Nameplate, Shell and Usable Capacity
  3. Tank Types and the Space They Really Offer
  4. Working Volume and Dead Volume
  5. Minimum Inventory and the Operating Floor
  6. Lease Term, Rate Structure and Renewal
  7. Ancillary Charges on a Lease
  8. Turn Rights and Throughput Limits
  9. Dedicated, Shared and Pooled Storage
  10. Heel, Cleaning and the Cost of Leaving
  11. Negotiating a Lease, a Worked Term Sheet
  12. What It Costs to Hold a Barrel in Place
M8 Throughput Agreements and Terminal Access Ch 95-106
  1. What a Throughput Agreement Is
  2. Minimum Volume Commitments
  3. Deficiency Payments and Make-Up Rights
  4. Pay-Whether-Used Logic Applied to Infrastructure
  5. Capacity Reservation Charges
  6. Terminal Services and the Service Schedule
  7. Berth Allocation Rights
  8. Priority, Queue and Tie-Break Rules
  9. Connection and Interconnection Rights
  10. Operational Balancing and Shared Facility Terms
  11. Curtailment and Excused Performance
  12. A Worked Commitment Decision
M9 The Secondary Market in Capacity Ch 107-116
  1. Why a Secondary Market Appears
  2. Where Rights Can Change Hands
  3. Assignment, Sublease and Release
  4. Pricing a Transferred Right
  5. Brokers, Bulletin Boards and Open Seasons
  6. Bidding a Solicitation
  7. Holding Space as an Option
  8. Credit, Consent and Default on a Transfer
  9. A Worked Release Negotiation
  10. What a Right Is Worth When Flows Reverse
M10 Running the Access Book Ch 117-127
  1. The Access Cost Stack
  2. Access Rights Inside an ETRM
  3. Reconciling Three Sets of Records
  4. Accruals and Provisions for Access Charges
  5. Governance Over Access Decisions
  6. Audit Rights and Using Them
  7. A Worked Case, Part One: Securing the Route
  8. A Worked Case, Part Two: The Month It Prorated
  9. A Worked Case, Part Three: Settlement and Lessons
  10. What This Analysis Cannot Tell You
  11. Where These Rights Are Used Next

The brochure gives each of these 127 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 7 of twenty

It stands alone, and it is also the entry point to the Crude Oil Desk Academy pathway.

Enrol or enquire See the whole pathway