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What is a Run Ticket?

Run Ticket

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Run Ticket

A run ticket is a document used in the oil and gas industry, specifically in the production and sale of crude oil. It provides a detailed record of the amount of crude oil that’s been pumped from a well or delivered to a particular location, usually a storage tank or pipeline. The run ticket is crucial for both accounting and operational purposes.

Key elements of a run ticket include:

  • Date and Time: The specific date and time the crude oil was measured or transferred.
  • Location: Where the measurement or transfer took place.
  • Volume: The quantity of crude oil, usually measured in barrels.
  • Gravity and Temperature: Measurements that help determine the quality and, therefore, the value of the oil.
  • Ticket Number: A unique identifier for each run ticket, aiding in tracking and record-keeping.
  • Signatures: Signatures of both the buyer and seller (or their representatives) to validate the transaction.

Example of a Run Ticket

Certainly! Let’s delve into a fictional scenario involving the use of a run ticket.

Scenario:

“LoneStar Energy,” a small crude oil producer in West Texas, operates several oil wells. On a particular day, they’re preparing to transfer a quantity of crude oil from well #3 to a storage facility managed by “TexStorage,” a local storage and transportation company.

Transaction Details:

  • Date and Time: June 15, 2023, 2:00 PM
  • Location: LoneStar Energy Well #3
  • Volume: 750 barrels
  • Gravity: 30° API
  • Temperature: 75°F
  • Ticket Number: LS20230615-03

Action:

A truck from TexStorage arrives at the site to transport the oil. Before the oil is transferred, both the representative from LoneStar Energy and the truck driver from TexStorage review the amount of oil and other relevant details.

Upon agreement, the oil is transferred to the truck. Once the transfer is complete, both parties sign off on the run ticket, validating the transaction.

The run ticket reads:

Run Ticket: LS20230615-03

Producer: LoneStar Energy
Location: Well #3, West Texas

Date & Time of Transfer: June 15, 2023, 2:00 PM
Volume: 750 barrels
Gravity: 30° API
Temperature: 75°F

Acknowledged by:
John Doe (LoneStar Energy) ________ [Signature]
Alex Smith (TexStorage) ________ [Signature]

Both LoneStar Energy and TexStorage retain a copy of this run ticket. LoneStar uses it to record the quantity of oil they’ve produced and transferred, and to bill TexStorage. Meanwhile, TexStorage uses it to verify the amount of oil they’ve received, and for their payment and inventory records.

This run ticket serves as both a receipt and a proof of transaction, ensuring transparency and accuracy in the crude oil business.

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