How G&C Helps Protect Your Revenue - LACT Measurement Accuracy

Is Inaccurate Custody Transfer Costing You Revenue?

In oil and gas, what doesn’t get measured accurately often doesn’t get paid. Every custody transfer—where ownership of hydrocarbons changes hands—is a financial transaction. If that measurement isn’t airtight, your business could be leaking millions in unaccounted product, unbillable volumes, and unresolved disputes.

The problem isn’t hypothetical. It’s happening at the point where it matters most: the LACT (Lease Automatic Custody Transfer) unit. The good news? This is a solvable problem—if your measurement system is built for auditability, repeatability, and traceability. G&C Optimization can help!

Spreadsheet showing small volume discrepancies with oil barrels in the background

The Financial Risk of Measurement Gaps

When custody transfer systems underreport by even 0.25%, the loss adds up fast. On a transfer of 10,000 barrels per day, that’s 25 barrels unaccounted for—daily. At $75/barrel, that’s nearly $700,000 per year that never hits your books.

But the cost isn't just in lost product. It’s in what follows:

Revenue disputes with pipeline operators or buyers
Delays in payment while volumes are reconciled
Legal or third-party audit expenses to resolve measurement conflicts
Strained partnerships that increase commercial risk

Lease Automatic Custody Transfer unit with digital sensors and live data feed

How G&C LACT Systems Protect Your Bottom Line

G&C Optimization builds LACT systems that serve one purpose: to give both parties the same story, backed by verifiable data. Our equipment is engineered to capture consistent, auditable flow measurements in real-time.

Here's what that means for your business:

Automated flow measurement integrated with high-accuracy temperature and pressure sensors
Real-time data acquisition with digital records traceable to each transfer
Seamless integration with your existing reporting infrastructure for billing and reconciliation
Reduced manual sampling and recalibration events

Comparison of manual and automated custody transfer setups

The Business Case for High-Accuracy Measurement

Hydrocarbon value is directly tied to volume—and if your LACT unit can’t measure and report to that level, you’re leaving money on the table. High-accuracy flow meters paired with temperature and pressure correction eliminate undercounting and miscalculation.

In addition to revenue capture, our LACT solutions reduce operating costs. Automating your custody transfer means fewer boots on the ground, fewer recalibration visits, and fewer arguments that require third-party verification. These operational savings reduce overhead and administrative hours tied to dispute resolution.

Business partners shaking hands at an oil transfer station

Improved Partner Confidence

When the buyer trusts your numbers, the deal moves faster. When your data is auditable, upstream and midstream partners are less likely to challenge volumes or withhold payments. Transparent measurement systems also reduce liability exposure in the event of regulatory review or third-party audit.

Faster Reconciliation = Faster Payment

If you're still relying on inconsistent readings or outdated LACT systems, you're accepting avoidable financial risk. Inaccurate measurement is a liability—one that compounds daily.

Your custody transfer point should be a source of revenue, not a point of loss. Contact G&C Optimization to schedule a consultation. We’ll help you quantify the financial upside of high-accuracy measurement and show you how to put more revenue on the books—barrel by barrel.

Tags: lease automatic custody transfer lact unit lact oil and gas