ARCHIVED—Downstream Petroleum Trade Sector Review Recommendations — Implementation Update
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Table of Contents
- 1.0 Marine Tank and Gauging
- 2.0 Railway Tank Cars
- 3.0 Pipeline Meters (Liquid)
- 4.0 Other Trade Measuring Devices in the Downstream Petroleum Sector
- 5.0 Physical Measurement Standards
- 6.0 Mandatory Registration of All Service Providers; and Alternate Service Delivery Mechanism for Delegating Authority to Provide Initial and Periodic Inspection on Behalf of Measurement Canada
- 7.0 Pre-packaged and Bulk Commodities
- 8.0 Complaint Resolution
- 9.0 Reporting, Monitoring, and Enforcement
- 10.0 Next Sector Review
The following documentation specifically details those recommendations that were accepted by Measurement Canada's (MC) Senior Management Committee (SMC).
1.0 Marine Tank and Gauging
1. Measurement Canada (MC) exempt from all provisions of the Weights and Measures Act, any measurement based on the gauging of tanks or strapping/gauging for the purpose of trading large quantities of petroleum products under contractual agreements among petroleum companies, petroleum refiners and large commercial customers
A formal exemption for any measurement based on the gauging of tanks or strapping/gauging for the purpose of trading large quantities of petroleum products under contractual agreements among petroleum companies, petroleum refiners and large commercial customers will require changes to the present Weights and Measures Legislation.
MC needs to define "Large Quantities" and "Large Commercial Customers".
Consultation on possible legislative amendments, including these related to the trade sector review recommendation, has been completed by the Legislative and Regulatory Affairs Division. MC will propose recommendations for possible legislative amendments.
2.0 Railway Tank Cars
2. A railway tank car working group be established to review and report to Measurement Canada in preparation for the next sector review, on;
- both written and physical standards for the calibration methods on railway tank cars, on a North American basis;
- the need for approval, initial inspection and certification and periodic re-certification for other devices (e.g., thermometers, density devices, pressure gauges, etc.) used in conjunction with railcar markers during the trade transactions.
Currently, there are no railway tank car manufacturers operating facilities in Canada.
MC must consider the need and if a North American work group can be established to develop such standards for use in Canada. More research is required.
3.0 Pipeline Meters (Liquid)
3. Measurement Canada exempt liquid pipeline meters and ancillary measurement instruments (e.g., temperature, pressure, density instruments used in conjunction), from the approval and inspection certification requirements of the Weights and Measures legislation.
The formal exemption of liquid pipeline meters and ancillary measurement instruments from approval and inspection will require changes to the present Weights and Measures Legislation. Consultation on possible legislative amendments, including these related to the trade sector review recommendation, has been completed by the Legislative and Regulatory Affairs Division. MC will propose recommendations for possible legislative amendments.
MC must define liquid pipeline meters and boundaries as applicable to the DPTS.
MC must determine when the liquid pipeline meters could be formally exempt from approval in the DPTS.
4.0 Other Trade Measuring Devices in the Downstream Petroleum Sector
4.1 Approval of Devices
4. Measurement Canada continue to approve measuring devices that are destined for trade use.
Recommendation 4 does not require any changes to MC's requirements. MC will maintain existing approval requirements for devices that are destined for trade use. Approval of devices intended for trade use is presently a requirement under section 8 (a) of the Weights and Measures Act.
No further action required.
5. Measurement Canada maintain the current approval exemption for pre-packaging devices used for standard quantity commodities.
Recommendation 5 does not require any changes to MC's programs or requirements. MC will maintain existing exemptions on packing devices. Packing devices are presently exempt under W&M Reg. 4 (1) m.
No further action required.
6. Measurement Canada explore ways to expedite the approval process to permit industry to obtain the most current device technology by considering;
i) a complete review of the current Measurement Canada approval process to rationalize the full laboratory evaluation of devices, i.e., more performance based criteria rather than a design criteria (especially noted for temperature and pressure instruments) for approval purposes;
MC is currently reviewing its laboratory approval process including re-writing all approval procedures while validating each process to become accredited to ISO 17025 certification. MC normally prefers to test as many devices as possible in house because of the controlled conditions and enhanced test equipment available in its laboratories. When testing devices with temperature and pressure corrections, the laboratory is able to cover the complete correction range with electronic input. Testing in the field is subject to ambient conditions. In this manner, the laboratories are better able to evaluate the performance based criteria of the device.
No further action required.
ii) clearly define whether ancillary device components (i.e., pressure, temperature, density) be approved separately or as part of a complete measuring system;
MC has issued a policy document entitled "Policy for the Approval and Inspection of Ancillary Measurement Devices in the Downstream Petroleum Sector", to establish a MC policy and supporting rationale for the approval and inspection requirements for ancillary measurement devices for temperature, pressure, and density.
iii) the recognition of other countries' approvals provided the written standards tested to, would not result in a lowering of the current Canadian standards. The device would only be subject to those approval tests not accounted for, in order to supplement the existing approval data from other countries.
MC will continue to conduct approval testing. MC remains open to the development of future ASDMs for the approval of trade devices. MC will strive to improve it's efficiency to conduct approval testing through various means including the mutual recognition of other countries' approval tests.
MC and United States have reached a bilateral agreement whereby one country recognizes the examination and tests of certain instrument types performed by the other country. This agreement is known as the Canada-US Mutual Recognition of Type Evaluation Program. The program is presently open to scales and fuel dispensers only. The agreement allows MC to perform type approval evaluations and tests of the device types mentioned on behalf of the National Conference on Weights and Measures (NCWM). The NCWM recognizes the results of the tests performed by MC for the purpose of issuing Certificates of Conformance. Each country continues to issue its own Notice of Approval (Canada) or Certificate of Conformance (NCWM).
Another program, The Recognition of Test Results from ISO 17025 Accredited Test Facilities Program - RT-01 may be expanded in the future. The program was developed to provide more flexibility to approval applicants wishing to submit test results from such facilities with a view to reducing their approval turn around times. The program is presently limited to the testing of previously approved electricity meters which have been modified and are being re-submitted for approval purposes. Currently, there are no short term plans to expand this program for trade devices used in the DPTS.
No further action required.
4.2 Initial Inspection of Devices
7. Measurement Canada continue to require an initial inspection and certification program for devices prior to being used in trade.
Recommendation 7 will not require any changes to MC's current requirements. MC will maintain the initial inspection requirement where devices intended to be used in trade must be initially inspected prior to their first use.
In sub-sectors like the NGL (natural gas liquids) where MC had little intervention, new inspection programs are now in place to work co-operatively with companies who market these products to ensure all required equipment is approved by MC and that it is installed, inspected and used in accordance with the applicable Weights and Measures legislation.
Compliance to these requirements and inspection programs will be ongoing.
8. Measurement Canada maintain the current inspection and certification exemption for pre-packaging devices used for standard quantity commodities.
Recommendation 8 will not require any changes to MC's programs or requirements. MC will maintain existing exemptions on packing devices. Packing devices are presently exempt under W&M Reg. 4 (1) m.
No further action required.
9. Measurement Canada clearly define whether ancillary device components (i.e., pressure, temperature, density) be inspected and certified separately or as part of the complete measuring system.
MC has issued a policy document entitled "Policy for the Approval and Inspection of Ancillary Measurement Devices in the Downstream Petroleum Sector", to establish a MC policy and supporting rationale for the approval and inspection requirements for ancillary measurement devices for temperature, pressure, and density.
No further action required.
4.3 Periodic Inspections (Re-Certification) of Devices
10. Measurement Canada provide for mandatory periodic re-certification frequencies for trade devices in the downstream petroleum sector. An initial frequency of 2 years to be established whereby all trade measurement devices are required to be re-certified.
Implementing a mandatory two year re-verification period for trade devices in the downstream petroleum sector will require legislative review and amendments to the Weights and Measures requirements.
Consultation on possible legislative amendments, including these related to the trade sector review recommendation, has been completed by the Legislative and Regulatory Affairs Division. MC will propose recommendations for possible legislative amendments.
MC must determine when the mandatory two year re-verification period for trade devices in the downstream petroleum sector can commence.
11. A technical working group be established and made up of industry and Measurement Canada, to study the optimum re-certification frequency of various measuring device types to consider factors such as the type of product being measured (meters), mobile versus stationary, remote locations, and throughput (meters).
MC must implement a technical work group made up of industry and MC to study for the optimum re-certification frequency of various measuring device types to consider factors such as the type of product being measured (meters), mobile versus stationary, remote locations, and throughput (meters).
4.4 Pre-Installation Assessment
12. Pre-installation assessment provided by Measurement Canada should remain in place as a voluntary program.
Recommendations 12 will not require any changes to MC's present programs or requirements. Industry is encouraged to contact the appropriate Volume Specialist for the locality of installation anytime before or after inspections are requested. MC Specialists are available to provide answers to questions and concerns though out the design, development and implementation stages of any proposed trade measuring system.
No further action required.
13. Measurement Canada develop standard device installation templates to identify the component layout for compliance to the various measurement applications. Templates are needed to assist contractors with the installation and ASDM organizations performing initial inspection and certifications.
MC has developed and issued standard device installation templates to identify the component layout for compliance to the various measurement applications. The standard device installation templates can be located in Part 5 of the Field Inspection Manual for Volumetric Measuring Devices.
No further action required.
5.0 Physical Measurement Standards
14. Measurement Canada provide for the adoption of legislation to formally require that all Level III physical working standards used for the calibration and/or certification of trade devices and ancillary instruments be accepted, calibrated, and certified by Measurement Canada at required intervals.
15. Measurement Canada provide for the adoption of legislation to formally require that all Level II physical reference standards that are used for the calibration and/or certification of Level III physical working standards be accepted, calibrated, and certified by Measurement Canada at required intervals.
Service providers operating under the authority of MC to certify trade devices are required to use traceable and calibrated physical measurement standards when they perform inspections of legal for trade devices. While the use of calibrated and traceable standards by all service and repair organizations is encouraged, MC has no authority over organizations performing calibration work outside of its alternative service delivery mechanisms (ASDMs).
Recommendations 15 does not require any changes to MC's present programs or requirements. MC is presently mandated to re-certify every local standard within such periods as identified in Regulation 56 (1) of the Weights and Measures Regulations.
No further action required.
16. Measurement Canada and the National Research Council continue to provide necessary standards calibration and certification services, where applicable, to maintain traceability to international standards.
MC will maintain traceability to MR-1 and other national standards held by the NRC as identified by Schedule IV of the Weights and Measures Act. Traceability to any other standards will require revision and amendments to the Weights and Measures Act.
Currently, MC does not recognize traceability to international standards i.e., traceability to the US National Institute for Standards and Technology.
Consultation on possible legislative amendments, including these related to the trade sector review recommendation, has been completed by the Legislative and Regulatory Affairs Division. MC will propose recommendations for possible legislative amendments.
No further action required.
17. Measurement Canada consider the use of Alternate Service Delivery Mechanisms for the calibration of Level III physical working standards.
MC is continuing to perform calibration and certification services of physical test standards, according to the schedule in the Weights and Measures Regulations, until such time as accredited or recognized 3rd parties or laboratories are recognized.
The Recognition of Calibration Results from CLAS Type I Laboratories Program - RC-01, may be expanded in the future. This program allows Measurement Canada to consider calibration results from CLAS certified Type I Laboratories in order for the Minister to designate as a local standard any standard that has been calibrated and certified in relation to a reference standard as accurate within prescribed tolerances. Currently, the program is open to mass standards only.
MC has issued a document, entitled Bulletin: A-2,"Local standards used by authorized service providers", providing instructions for authorized service providers and organizations that have applied for accreditation or registration regarding the selection and preparation of standards for submission to Measurement Canada for calibration, certification and designation as local standards.
No further action required.
18. Measurement Canada maintain or adopt necessary requirements for the design, performance, operation, selection and usage, maintenance and frequency of re-calibration of physical measurement standards.
Recommendations 18 will not require any changes to MC's present programs or services. MC will maintain existing programs and services, specifications and requirements for the calibration of measurement standards. MC has issued a document entitled "Guidelines for Calibration and Certification of Volume Standards", which will provide essential information on the acceptable design criteria, calibration and certification guidelines for volumetric standards.
No further action required.
19. Measurement Canada formally adopt American Petroleum Institute (API) standards for the design, use, water draw procedures and tolerances of pipe provers.
MC has incorporated much of the API standard's design, use, water draw procedures and tolerances for pipe provers in its Guideline document, as mentioned above, with a number of exceptions.
No further action required.
20. A technical working group be established and made up of industry and Measurement Canada, to review design criteria for standards and to study the optimum re-certification frequency of various physical standards.
Currently, MC through the Volumetric Standing Committee has reviewed and revised the document "Guidelines for the Calibrations and Certification of Volumetric Standards",which established MC criteria for the design of level III proving standards.
MC is presently mandated to re-certify every local standard within such periods as identified in Regulation 56 (1) of the Weights and Measures Act and Regulations.
MC must implement a technical work group made up of industry and MC to review design criteria and to study for the optimum re-certification frequency of various physical standards.
6.0 Mandatory Registration of All Service Providers; and Alternate Service Delivery Mechanism for Delegating Authority to Provide Initial and Periodic Inspection on Behalf of Measurement Canada
21. Measurement Canada create a mandatory registration program for all service providers in the Downstream Petroleum industry that is designed and implemented in consultation with affected parties; this program would be focussed on the following elements:
- technical knowledge of the technicians performing repairs and calibrations (continuous in-house technical training program);
- knowledge of applicable legislation, proper inspection procedures and enforcement policies; periodic competency checks;
- proper use/maintenance of appropriate traceable and certified physical standards and test equipment; and
- other quality elements that are deemed essential.
MC has created a voluntary registration program for the DPTS. A voluntary accreditation program was already open to all sectors. Both programs permit companies to become authorized by MC for device inspection. Interested organizations should contact their local MC district office for more information on MC's Authorized Service Provider Programs or visit the MC website.
MC has developed and maintains published standardized inspection and test procedures for the inspection of devices and delivers technical training and administers practical evaluations for inspectors and ASPs performing inspections on behalf of MC.
No further action required.
22. Measurement Canada delegate its authority for initial and periodic inspection certifications under the registration program described in Recommendation 21.
MC's registration and accreditation programs focus on initial and subsequent inspections.
No further action required.
23. Maintenance work that is limited to performing calibration checks and breaking seals on ancillary devices be exempt from the registration program in Recommendation 21 if it has no impact on the device accuracy.
MC's registration and accreditation programs focus on initial and subsequent inspections but not on the maintenance norr repair work to these devices. These are not considered to be a part of either program.
No further action required.
24. Measurement Canada implement adequate monitoring and reporting mechanisms which may include audits and product audits to ensure that organizations comply with the requirements of the registration program.
Recommendation 24 will not require any changes to MC's present registration or accreditation programs. MC personnel will continue to perform the mandatory initial theoretical and practical evaluations, as well as periodic audits and follow-up inspections off all its Authorized Service Providers (ASPs).
No further action required.
7.0 Pre-packaged and Bulk Commodities
25. With the exception of the Marine and Tank Gauging sub-sector, the applicable tolerances for bulk commodities should remain in place for complaint resolution purposes.
MC will maintain the tolerances established for bulk commodities in the DPTS.
No further action required.
26. Packaged commodities in the Residual Products Sub-sector (lube oils, greases, etc.) be subject to a proactive commodity inspection program driven by compliance rates or known problem areas.
MC is continuing its commodity inspection programs at its discretion as part of marketplace monitoring and continues to target areas where problems are known. Presently, no ASDM has been identified or is contemplated for commodity inspection work.
No further action required.
27. Packaged commodities, in all other sub-sectors, with the exception of transactions by Marine and Tank Gauging, Pipeline, and Railway Tank Cars be subject to a reactive (complaints) commodity inspection program only. This does not preclude Measurement Canada from initiating a corrective short term program where there are known problems resulting from complaints; the applicable tolerances and net quantity declaration requirements should remain in place.
MC is continuing its commodity inspection programs at its discretion as part of marketplace monitoring and continues to target areas where problems are known. Presently, no ASDM has been identified or is contemplated for commodity inspection work. MC will maintain the tolerances established for pre-packaged commodities and requirements for net quantity declarations in the DPTS
No further action required.
8.0 Complaint Resolution
28. Measurement Canada continue, per its strategic direction to address complaints; review and revise written standards; programs should remain in place per the status quo.
MC is committed to investigating all complaints received regardless of the trade sector or MC's level of intervention in it. An investigation will normally include an inspection of the weighing or measuring system in question, a review of the invoice or bill of lading and could also involve an inspection of the prepackaged or bulk commodity.
MC has no authority under the Act to provide resolution nor compensation. MC will, however, provide a complainant with pass/fail results of the inspection and if during the investigation a suspected device was found to be in non-compliance with Weights and Measures requirements, further appropriate enforcement actions would ensue to ensure the device was repaired or replaced. MC must ensure that access to information and privacy requirements established by the federal government are respected.
Measurement Canada is in the process of developing and will issue a policy clearly outlining what information from complaint inspections/investigations can be provided to complainants.
9.0 Reporting, Monitoring, and Enforcement
29. Where programs and services are maintained, Measurement Canada remain the organization that monitors the marketplace and maintains/develops the necessary reporting mechanisms, to assess on-going performance of the marketplace and effectiveness of its programs; and to be the custodian of this information.
30. If Measurement Canada chooses to publish sector compliance rates for devices on the Measurement Canada web site, the information must be clear and meaningful.
MC will continue to monitor the marketplace to ensure measurement accuracy and equity in the DSPTS. MC has developed new Marketplace Monitoring Programs and performance indicators in all trade sectors where MC intervenes. MC's programs and policies are in place to intervene whenever inequities are discovered.
MC is planning to report the state of a sector through marketplace analysis of a trade sector's compliance levels and indicators.
MC is currently processing the compliance information and must develop method(s) to display the results for the interested stakeholders.
31. Measurement Canada use existing industry associations/contacts and the Canadian Forum on Trade Measurement for gathering input from the sector; the creation of sector advisory panels is not required.
This recommendation will be implemented when further information from the sector is required.
Requires no further action.
32. Measurement Canada be more proactive in marketing its services to the marketplace to address complaints.
MC is presently examining how the department is displayed in the government blue pages of telephone directories with a view to improve MC's accessability. MC publications were recently updated in 2006 and are scheduled to be re-evaluated later this fiscal year 2008/2009.
MC recently created numerous kiosks for use in trade fairs, consultations and association meetings to further promote and enhance MC programs and services. As well, MC contracted to develop a five minute promotional video for all audiences to explain the mandate of MC and the importance of measurement accuracy.
MC is set to launch a new website that will feature an enhanced consumer portal.
Other initiatives are ongoing and further updates will be announced as they become available.
33. Substantial fines/penalties be imposed for non-compliance for device owners and organizations with delegated Measurement Canada authority to serve as a deterrent.
MC has initiated a study and review of the Contravention Act to further develop recommendation 33 and possibly, implement the use of tickets and/or fines as alternative enforcement tools.
MC must determine if this scheme may be a viable enforcement option and if so, when such a tool could be in force.
10.0 Next Sector Review
34. The next sector review period be 2-3 years after the full implementation period, and 3-5 years thereafter.
35. A more frequent sector review could be initiated should the following occur:
- a decrease in device compliance rates;
- an increase in complaints;
- a major device technological change; or
- a failure of the existing ASDM to satisfy the needs of the sector.
Currently, there is no plan to conduct a formal, follow-up review of the trade sector. In the future, MC will conduct less formal periodic reviews in trade sectors already reviewed. MC will not conduct a formal review unless marketplace monitoring information demonstrates the need.
No further action required.
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