BACK OFFICE ADMINISTRATION FOR OIL & GAS PURCHASERS

Tank Strap Databases

 

Measuring And Calibrating Accurate Volume Of Oil And Gas

To schedule a free consultation, please call (303) 463-8799 or fill out our contact form.

We maintain tank strap databases for oil and gas purchasers and operators that track accurate production volumes.

Tank Strapping: Then And Now
The term “tank strapping” comes from the days when measurements of oil and gas would be taken by using a steel tape to measure the circumference, diameter, and height of the tank. Today, lasers, 3D modeling, and automated calibrations systems are used, but the end goal is the same: Get precise measurements, make appropriate adjustments, and accurately calculate the volume of oil or gas in the tank.

Tank Strap Databases
Tank strapping is the calibration process that’s done in the field, and the strap table includes the calibration data. A tank strap database for a single tank typically includes:

  • calibration date
  • tank ID (name and location)
  • tank-specific details (such as diameter and shape)
  • liquid height (in feet)
  • corresponding volume (in barrels)
  • corrections for temperature

Royalty Payment Process
Tank strap databases are the first step in calculating royalty payments to owners. In order to compute sales volume, we need to have accurate tank measurements and volume calculations. Once we have sales volume, we use monthly price bulletins to get the price per barrel, which gives us gross revenue. After applicable deductions are made, we distribute revenue to each royalty owner, based on their decimal interest in the division order.

Why Accuracy Matters In Tank Strap Databases
Because everything in division order hinges on knowing “how much oil or gas was actually sold,” even the smallest discrepancies can lead to massive headaches if they need to be corrected down the line.

Why Use ExTex
At ExTex, we have the experience and expertise to ensure that incorrect measurement data or discrepancies don’t turn into incorrect owner payments. We verify the data that is coming in from the field, before we pay out royalties to owners.

We routinely look for red flags in incoming production and sales data, including:

  • sudden spikes or drops in barrels sold
  • volumes that don’t match historical production trends
  • mismatches between run tickets, purchaser statements, and/or accounting records

By proactively flagging unexplained anomalies in volume, we can potentially avert owner disputes, audits, and regulatory scrutiny that could arise from errors.

Other Well Services That We Provide
In addition to maintaining tank strap databases, we also provide other well services:

About ExTex
Since 1998, have been providing the full range of division order services for oil and gas companies of all sizes, including startups. Thanks to our experience, expertise, and efficiencies, we can create a customized back office solution for you that could save you money and provide peace of mind.

We are SOC compliant, and in addition to well services, we offer: title services, revenue accounting services, and tax accounting services.

For more information about tank strap databases, or to schedule a free consultation, call (303) 463-8799 or fill out our contact form.

ExTex Division Order Services, LLC is located in the Denver metro area (in Golden, Colorado), and we provide back office outsourcing services for oil and gas companies across the U.S. and Canada.

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“The ExTex team has provided extraordinary services to our company for many years at a reasonable cost.”

Mark B, VP of Finance, Texas

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