LACT Operations

JAG builds LACT units, complete truck unload stations, blending facilities, terminals and pipeline gathering systems in the domestic U.S.

Economics of a Lease Automatic Custody Transfer (LACT) unit

The singular purpose of the LACT unit is to meter and measure the quantity and quality of crude oil, either from lease to truck, from lease to pipeline, or from truck to pipeline, to ensure accurate volumetric transfer.

The two most common methods of measuring the volume of petroleum liquids are tank gauging and liquid metering. The problems associated with tank gauging are:

  • It requires that a person make an accurate liquid level determination by climbing to the top of the tank to be gauged twice (top gauge and bottom gauge).
  • It requires a person to make an accurate average liquid temperature determination. When is the last time you saw a truck driver use an API wood-backed thermometer?
  • It requires a person to make an accurate sediment and water content analysis (BS&W).
  • It requires that the tank be static (no liquid entering or leaving the tank).

Since crude oil is sold on the basis of temperature, API gravity and the amount of basic sediment and water (BS&W), it is very important to make accurate measurements. A great effect on volume is temperature. Crude oil will expand and contract at the rate of 2% per 40˚ F temperature change. The accumulation of errors present in tank gauging may be as high as 2%. The potential annual losses in revenue, based on daily volume, and on $100.00 per barrel oil would be as follows:

Daily Volume Lost Revenue per year at 2%
500 barrels $365,000.00
1,000 barrels $730,000.00
2,000 barrels $1,095,000.00
3,000 barrels $2,190,000.00

The simplest and most effective way to transfer ownership of liquid hydrocarbons between a buyer and a seller is through the use of an accurate liquid meter. The liquid meter is capable of unattended measurement with maintained accuracy of .25%, or better. The LACT unit has become critical in our industry, in regard to managing over and shorts.

LACT-multipot-BJAG builds custom LACT Units, to customer specifications, from the “ground up” at our manufacturing warehouses located in George West, Texas. The build time on one of the base LACT Units can be less than one week. The usual time frame for the manufacturing, wiring, and software implementation on a custom SUPER SMART dual meter LACT Unit is approximately four weeks. JAG builds, installs, operates, and maintains the L ACT Units, which insures little or no “down time” in the field.

JAG Base LACT Unit Standard Equipment List

  • Smith Meter – with Inner Mechanism
  • BS&W monitors & probes
  • Back pressure valves
  • Air Eliminators
  • Meter proving loop
  • 16 Gallon Sample Pot
  • Ergonomically correct Unload hose with dripless fitting and flange
  • Dripless unload hose container
  • Guard Rails

Upgrades and Options

  • Promass Coriolis Meter
  • 16 Gallon -Multiple Sample Pot capabilities to segregate Transporters
  • 40 Gallon – Composite Sample Pots for gathering/terminal wide product verification
  • Booster pumps & motors, where applicable
  • Temperature and Pressure transmitters
  • Motor Operated Valves (MOV’s), where applicable
  • Power & Volume Regulators
  • H2S Monitors, where applicable
  • Heat Tracers, where applicable
  • Environmentally friendly drip pan containers
  • Canopies
  • Scully System Permissible for proper grounding of Truck and Trailer prior to unload start
  • “Build to Suit” Enclosures for extreme climates
  • Explosion Proof Construction, where Class 1, Div 1 is applicable
  • Touchscreen computer interface for driver unload
  • Vortex Coolers
  • FlowX® software for complete automation rack control & reporting

FlowX® Software & Corporate Server Support

  • Customer access to Corporate Server
  • Remote site “real time” monitoring for product quality assurance
  • Auto-generating daily, monthly, quarterly, & year-end reporting
  • Query search functionality for driver, transporter, reporting, & ticketing in archived database
  • Advanced filter functionality for customized reporting
  • Reprinting of unload tickets

Click Here for a Report Format Example

The Multi-sample Pot Option

LACT-multipot-CBased on customer needs, we can install multiple individual (16 gallon) sample pots on each skid. The multiple pots allow for various delivering parties to deliver through one LACT unit. Due to the multiple sample pot configurations, each delivering party’s oil can be monitored separately, or as needed. In addition to the multiple individual pots, a larger (40 gallon) composite sample pot will be placed on the skid to collect a composite sample from the total delivered volume.


JAG Energy USA, Inc. is a privately-held Texas corporation that began building truck delivery stations in 2004. We build our LACT units “from the ground up”, at our facility at George West, Texas. Our philosophy has always been to provide our customers with a customized, quality product, along with state of the art equipment. Our field technicians are experienced, knowledgeable people who understand how to service the precision equipment we manufacture.