Fixed Grades

1. For grades where only one participant requests production in its DOP. The delta is allocated to the participant with the DOP request as shown in following example. Consider a fixed grade I-390. Comparing the combined DOP for I-390 with its actual refinery production shows a delta of 7879 barrels. The entire delta is allocated to participant AOC, as BOC did not request production of this grade in its DOP:

   PARTICIPANT	DOP, bbl	DELTA, bbl
   AOC	55300	7879
   BOC	0	0
   TOTAL	55300	7879
   ACTUAL PRODUCTION	63179
   DELTA	7879

2. For a grade where both participants request production in their DOP. Delta is allocated in the ratio of their DOP requests. However, if allocation by this rule causes negative closing inventory to a participant, the delta should be changed:

   PARTICIPANT	DOP	DOP RATIO	DELTA	LIFTING	OPENING INVENTORY	CLOSING INVENTORY
   AOC	69185	0.8279	20126	98000	5260	?3429
   BOC	14384	0.1721	4184	0	3400	21968
   TOTAL	83569	1.0000	24310		8660	18539
   PRODUCTION	107879
   DELTA	24310

   In this case, splitting the delta in the DOP ratio has caused negative closing inventory due to overlifting by one participant. Here, AOC s delta is made equal to (lifting opening inventory DOP) to eliminate the negative closing inventory as follows:

   PARTICIPANT	DOP	DELTA