HCOTEG152760 - Allowances for Deficiencies: General
Allowances for temperature reduction, inaccuracy of measurement and natural wastage are set out in HCOTEG152790 of this section.
These allowances may be used as a guide in the investigation of oil losses, and as only an indicator of an excessive discrepancy. Oil companies should have their own instructions and practices that they follow for oil loss enquiries. Officers should become familiar with company procedures and their own management reporting mechanism. For example, company management may set oil loss objectives for their sites, taking account of company policy and local site circumstances.
Statutory right to allowances
There is No statutory right to these allowances. They are practical working limits within which losses may be written off by the despatching warehouse without the warehouse-keeper having to supply any formal explanation.
Provided there is no reason to suspect illegal abstraction or diversion of product and it is clear that a loss resulted wholly or partly from temperature reduction, inaccuracy of measurement and natural wastage, the appropriate allowance may be claimed in full.