What is a Quality Bank? A Quality Bank is a financial accounting process used in the crude oil and NGL industries to ensure the fair and accurate allocation of product value when products of varying qualities are comingled within a pipeline system.
ASL provides comprehensive Quality Bank administration services that ensure each shipper is fairly compensated for the varying values of the product.
Our experienced team manages every aspect of the process, helping pipeline operators maintain compliance, transparency, and confidence in the settlement process.
Using our proprietary Quality Bank software, we administer both price-based and table-based quality banks with the flexibility to accommodate each client’s unique business rules and operational requirements. Our system automates calculations, prior-period adjustments, invoicing, settlements, and detailed reporting, providing an accurate, efficient, and fully auditable process.
Our Quality Bank Services Include:
- Quality Bank administration and processing
- Data collection and validation
- Price-based and table-based Quality Banks
- Shipper invoicing and final settlements, optimizing cash flow
- Prior-period adjustments and audit support
- Customized operational and financial reporting
- “What If” scenario modeling for new production and shippers