# US 12,002,118 B2 · Distributed ledger in oil and gas custody transfers

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- Number: US 12,002,118 B2
- Document ID: US12002118B2
- Status: Granted
- Kind: B2
- Application number: 17/106,714
- Filed: 2020-11-30
- Published: 2022-06-02
- Granted: 2024-06-04
- Earliest claimed: 2020-11-30
- Assignees: Schneider Electric Systems USA, Inc.
- Applicants: Schneider Electric Systems USA, Inc.
- Inventors: Subha Lalitha Bhattiprolu; Richard Linwood Linscott; Alexander Park Johnson
- Web page: https://patentgrep.com/patent/US12002118B2

## CPC

- G06Q 50/06: Energy or water supply
- H04L 9/3247: {involving digital signatures}
- H04L 9/50: {using hash chains, e.g. blockchains or hash trees}
- G06Q 2220/10: Usage protection of distributed data files
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- H04L: TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION (arrangements common to telegraphic and telephonic communication H04M)

## Abstract

Systems and methods for conducting hydrocarbon custody transfer uses blockchain to eliminate or minimize mistrust over the reliability, accuracy, and immutability of data. The blockchain is provided as a shared data layer that can store the data in a secure and tamperproof manner. The data may include data generated by equipment, sensors, people, processes, and the like, and may be automatically generated or compiled manually. A blockchain application digitally signs the data using public/private key encryption before uploading the data to the blockchain. The data can then be made available to all authorized custody transfer parties, including oil producers, well operators, regulatory teams, and the like, in the form of notifications, shared dashboards, and/or auto reports. Smart contracts may be embedded in the blockchain to carry out monetary settlements and value exchange by automating funds transfer if certain criteria are met.

## Claims

### Claim 1

A system for tamper-proof publishing of hydrocarbon data in oil and gas custody transfers, comprising:
a controller; and
a storage device coupled to the controller and storing computer-readable instructions for a distributed ledger app thereon, wherein the distributed ledger app, when executed by the controller, causes the system to:
initiate an exchange of hydrocarbon data in an oil and gas custody transfer at a Lease Automatic Custody Transfer (LACT) unit;
acquire the hydrocarbon data from the LACT, the LACT configured to measure a volume and quality of hydrocarbons for the custody transfer;
obtain a hash value for the hydrocarbon data, the hash value produced using a predefined hash function;
apply a digital signature to the hydrocarbon data and the hash value;
connect to a distributed ledger designated to receive the hydrocarbon data; and
transmit the hydrocarbon data and the hash value to the distributed ledger over a private or public network, including the Internet;
wherein the distributed ledger app further causes the system to obtain a hash value of equipment calibration data and device configuration parameters for equipment and devices used to acquire the hydrocarbon data, apply a digital signature to the equipment calibration data, the device configuration parameters, and the hash value, and transmit the equipment calibration data, device configuration parameters, and hash value to the distributed ledger; and
wherein the distributed ledger app further causes the system to upload to the distributed ledger a public key of a public/private key pair for the devices used to acquire the hydrocarbon data, the public key being stored in a public key repository in the distributed ledger.

### Claim 2 (depends on 1)

The system of claim 1, wherein the digital signature is applied by encrypting the hydrocarbon data and the hash value using a private key of the public/private key pair uniquely associated with the system.

### Claim 3 (depends on 2)

The system of claim 2, further comprising cryptographic hardware coupled to the controller, the cryptographic hardware operable to generate the hash value for the hydrocarbon data.

### Claim 4 (depends on 1)

The system of claim 1, wherein the distributed ledger is a private ledger configured to require provision of access credentials and the distributed ledger app causes the system to provide the access credentials.

### Claim 5 (depends on 1)

The system of claim 1, wherein the distributed ledger stores one or more smart contracts thereon and the hydrocarbon data transmitted by the system causes at least one of the smart contracts to self-execute.

### Claim 6 (depends on 1)

The system of claim 1, wherein the device configuration parameters obtained by the system includes edited device configuration parameters acquired from on-site devices used to acquire the hydrocarbon data.

### Claim 7

A method of tamper-proof publishing of hydrocarbon data in oil and gas custody transfers, comprising:
initiating, at a Lease Automatic Custody Transfer (LACT) unit, an exchange of hydrocarbon data in an oil and gas custody transfer;
acquiring the hydrocarbon data from the LACT, the LACT configured to measure a volume and quality of hydrocarbons for the custody transfer;
obtaining, using a controller, a hash value for the hydrocarbon data, the hash value produced using a predefined hash function;
applying, using the controller, a digital signature to the hydrocarbon data and the hash value;
connecting, using the controller, to a distributed ledger designated to receive the hydrocarbon data; and
transmitting, using the controller, the hydrocarbon data and the hash value to the distributed ledger over a private or public network, including the Internet;
wherein the method further comprises obtaining a hash value for equipment calibration data and device configuration parameters for equipment and devices used to acquire the hydrocarbon data, applying a digital signature to the equipment calibration data, the device configuration parameters, and the hash value, and transmitting the equipment calibration data, device configuration parameters, and hash value to the distributed ledger; and
wherein the method further comprises uploading to the distributed ledger a public key of a public/private key pair for the devices used to acquire the hydrocarbon data, the public key being stored in a public key repository in the distributed ledger.

### Claim 8 (depends on 7)

The method of claim 7, wherein applying the digital signature comprises encrypting the hydrocarbon data and the hash value using a private key of the public/private key pair uniquely associated with the controller.

### Claim 9 (depends on 8)

The method of claim 8, wherein obtaining the hash value for the hydrocarbon data comprises using cryptographic hardware coupled to the controller to generate the hash value.

### Claim 10 (depends on 7)

The method of claim 7, wherein the distributed ledger is a private ledger configured to require provision of access credentials and accessing the ledger comprises using the controller to provide the access credentials.

### Claim 11 (depends on 7)

The method of claim 7, wherein the distributed ledger stores one or more smart contracts thereon and the hydrocarbon data transmitted by the controller causes at least one of the smart contracts to self-execute.

### Claim 12 (depends on 7)

The method of claim 7, wherein the device configuration parameters obtained includes edited device configuration parameters acquired from on-site devices used to acquire the hydrocarbon data.

### Claim 13

A non-transitory computer-readable medium containing computer-readable instructions that, when executed by operation of a controller, cause the controller to:
initiate an exchange of hydrocarbon data in an oil and gas custody transfer at a Lease Automatic Custody Transfer (LACT) unit;
acquire the hydrocarbon data from the LACT, the LACT configured to measure a volume and quality of hydrocarbons for the custody transfer;
obtain a hash value for the hydrocarbon data, the hash value produced using a predefined hash function;
apply a digital signature to the hydrocarbon data and the hash value;
connect to a distributed ledger designated to receive the hydrocarbon data;
transmit the hydrocarbon data and the hash value to the distributed ledger over a private or public network, including the Internet;
wherein the computer-readable instructions further cause the controller to obtain a hash value for equipment calibration data and device configuration parameters for equipment and devices used to acquire the hydrocarbon data, apply a digital signature to the equipment calibration data, the device configuration parameters, and the hash value, and transmit the equipment calibration data, device configuration parameters, and hash value to the distributed ledger; and
wherein the computer-readable instructions further cause the controller to upload to the distributed ledger a public key of a public/private key pair for the devices used to acquire the hydrocarbon data, the public key being stored in a public key repository in the distributed ledger.

### Claim 14 (depends on 13)

The computer-readable medium of claim 13, wherein the computer-readable instructions cause the controller to apply the digital signature by encrypting the hydrocarbon data and the hash value using a private key of a public/private key pair uniquely associated with the controller.

### Claim 15 (depends on 14)

The computer-readable medium of claim 14, wherein the computer-readable instructions further cause the controller to use cryptographic hardware coupled to the controller to generate the hash value for the hydrocarbon data.

### Claim 16 (depends on 13)

The computer-readable medium of claim 13, wherein the distributed ledger is a private ledger configured to require provision of access credentials and the computer-readable instructions cause the controller to provide the access credentials.

### Claim 17 (depends on 13)

The computer-readable medium of claim 13, wherein the distributed ledger stores one or more smart contracts thereon and the hydrocarbon data transmitted by the controller causes at least one of the smart contracts to self-execute.

### Claim 18 (depends on 13)

The computer-readable medium of claim 13, wherein the device configuration parameters obtained includes edited device configuration parameters acquired from on-site devices used to acquire the hydrocarbon data.