R649-8-13. Form 12, Report of Transferred Oil

1. This report is to be used only in accounting for oil that is transferred from one entity to another entity or oil that is acquired and used during remedial operations on a well.

This includes situations such as the following:

1.1. Oil that is produced at one entity or is acquired from another company, is then used as load oil at a "second" entity, and is then recovered and sold, or

1.2. Oil that is produced and then transferred to a "second" entity for treatment and sale due to mechanical problems at the producing entity.

2. Load oil that is recovered at the "second" entity and non-load oil that is transferred to the "second" entity should be excluded from all reported production, dispositions, and stocks of the "second" entity on Form 11, Monthly Oil and Gas Disposition Report. This allows the reporting of the "second" entity's true production and sales on Form 11, while the remainder of any sales is accounted for on this form.

2.1. The transported volumes reported on this form plus the transported volume for the "second" entity on Form 11 should equal the total run ticket volume as reported by the trucking or pipeline company serving this entity.

2.2. This report is to be filed as an attachment to Form 11, Monthly Oil and Gas Disposition Report during the month in which recovered load oil or any other transferred oil (non-load oil) is sold from the "second" entity.