Q167. If my refinery sells a fuel product to a pipeline company that is measured by a custody transfer meter that is owned and operated solely by the customer, can I define this meter as a "fuel gas billing meter" as in subpart A 98.3( i )(4). 

A167. §98.394(b) states that "all measurement equipment" must meet the calibration requirements in subpart MM. Section §98.1(b) states that "if a conflict exists between the provision in subpart A and any other applicable subpart, the requirements of the subparts B through PP of this part shall take precedence." Therefore, the meter you use to measure quantity under subpart MM is not subject to the exemption in §98.3(i)(4) for fuel gas billing meters. Reporting parties must ensure that the calibration requirements as specified are met for quantity measurement equipment even if the equipment is offsite and/or operated by a third party. This is consistent with EPA's Response to Public Comments (Volume No. 38 for subpart MM, available at http://www2.epa.gov/sites/production/files/2015-07/documents/mmrtc.pdf) (PDF) (65 pp, 425KB, About PDF), in which EPA stated that refiners are responsible for calibration of measurement equipment operated by a third-party. Reporting parties must ensure that the calibration requirements as specified are met for quantity measurement equipment even if the equipment is offsite and/or operated by a third party.

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Source: This question and answer was derived from a Legacy FAQ

Approval / Publishing History: Version 2, Revised to update URLs per direction from K. Sibold, 9/27/2012

Expiration: None

Relevant Subparts:  Subpart MM
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