The document discusses moving from a traditional capital expenditure model for gas measurement equipment to a "Measurement as a Service" model utilizing vendor-managed equipment and services. Key benefits of this model include reducing costs through optimized labor, extending equipment lifespan, leveraging predictive analytics from collected data, and maximizing uptime. The proposed approach uses an Internet of Things connectivity gateway to transmit operational data from sensors and control systems to a data center for processing and analytics using a vendor's standardized design. This allows the vendor to provide the measurement function as a long-term contracted service rather than a one-time sale of physical equipment.

1. New Energy Strategic Planning Discussion Document for
“Measurement as a Service”
New Energy: A Midstream Gas Pipeline Transportation Company (The Company)
This document contrasts the current business model that relies on the company acquiring and maintaining
capital equipment over its useful lifespan for gas measurement versus the utilization of a commoditized
vendor managed service. Measurement “As a Service” would utilize the connectivity and shared
data/functionality which is the foundation for the rapid changes that are occurring in the Information
Technology space due to the Cloud and Integrated EcoSystems. Rapid advances in digital technology referred
to as “The Internet of Intelligent Things (IoIT)” is changing the landscape for business models in many
industries enabling “As a Service” business models that replace CapEx with OpEx financial models and a “Pay
as you grow” cash flow operating basis. We believe that the technology now supports the Measurement as a
Service (MaaS) business model for oil and gas transportation. Working closely with a major Midstream
company, CSC has defined a Secure Cloud Gateway that enables the MaaS business model with benefits that
include:
– Reduce labor cost component of Capital Projects
– Optimize current labor utilization
– Operational cost reduction:
– Extend major equipment life cycle
– Reduce fuel cost
– Leverage Big Data for Predictive Analytics
– Minimize In Service Delays and Maximize Uptime
– Reduce “internal” labor cost component of Capital Projects
– Optimize current labor utilization to focus on legacy Measurement Sites
– Operational cost reduction:
– Extend major equipment life cycle
– Reduce fuel cost
– Leverage Big Data for Predictive Analytics
– Additional Business Services for parties on both sides of the Interconnect via the Cloud
EcoSystems
– Minimize In Service Delays and Maximize Uptime
We begin by defining our terms and contrasting the current state “Physical Things” with the desired
future state with “Intelligent Things”.
A Measurement Station is an integrated set of equipment that calculates the physical volume (in mcf)
of natural gas that flows into or out of a pipeline. The billable quantity in dekatherms is calculated
based on the gas quality/heating value multiplied by the physical volume. The Measurement
EcoSystem is defined in the following link:

2. New Energy Strategic Planning Discussion Document for
“Measurement as a Service”
Gas Measurement
EcoSystem.xlsx
Physical Thing Business Model: Current State
Physical Things: Includes all necessary equipment for Gas Transportation: e.g. Measurement Stations,
Compressor Stations, Turbines, Valves, etc. Typically, a CapEx expense.
New Energy Assumptions
 Physical Things are purchased, capitalized & depreciated as Assets
 A pool of assets/funds is budgeted for the Support of the Physical Things
 Internal Synergies enable the budget to be kept flat except for additional Physical Things
 Physical Things are optimized based on a static New Energy design/implementation
 External Synergies, for example IoIT benefits are difficult/expensive to obtain
 Replacement for Physical Things & upgrades to New Energy's design are deferred for as long
as possible
Manufacturer Assumptions
 Primary Revenue from Sale of Physical Things
 Additional Break/Fix & Warranty Revenue may be obtained
 R&D is focused on building a better, more profitable Physical Thing
 Primary Objective is to sell the new/better Physical Things
Intelligent Thing Business Model (IoIT): Future State
New Energy Company Assumptions
 The IoIT value will best be obtained via commoditized, cost optimized IoIT Services & Operational
Assets 
 Vendor/Manufacturer Operational Assets/Services will be Utilized
 The Operational Assets/Services must be implemented following the Vendor/Manufacturer's
Design Standards in order for the Operational Assets to be kept current and obtain the synergies
that can be achieved via the Vendor's economies of scale
 The contract time for the Operational Asset/IoIT Services should tie to the current operational
timeline for the Business Companies' overall assets. For example, if customers sign a 20 year
contract with New Energy to get a pipeline built, the contract time for the Operational Asset
should also be 20 years

3. New Energy Strategic Planning Discussion Document for
“Measurement as a Service”
 If the Operational Asset Provider fails to meet their SLA's then another provider of similar
Operational Assets would be requested to assume the Responsibilities
Manufacturer Assumptions
 New IoIT Operational Assets will part of a new, independent business unit
 Revenue will be maximized by utilizing the power/value of the Internet of Intelligent Things
to optimize their services and equipment (Significant Cost Reductions should continue to be
obtained over the life of the Operational Asset)
 Additional Revenue may be obtained via Business/IoIT EcoSystems
 The Operational Assets may utilize equipment from a competitor
 20 Year Contracts with a defined revenue stream will help enable the success of the new IoIT
Business Unit

4. New Energy Strategic Planning Discussion Document for
“Measurement as a Service”
CSC Connectivity Gateway:
The “Measurement as a Service” strategy is based on a “CSC Connectivity Gateway” solution. The
Connectivity Gateway will use the new IoT (Internet of Things) technology, namely an IoT device.
The IoT device will connect to sensors, actuators that are attached to the operational assets (e.g. the
measurement instruments) or to the SCADA components – the Remote Terminal Units (RTUs),
Programmable Logic Controllers (PLCs), Measurement Control Units (MCUs), SCADA Logs. The IoT device
can use either wired (serial) connectivity (e.g. RS232) or wireless connectivity (e,g. Bluetooth) to connect
to the sensors or SCADA components. The IoT device will translate the data from the OT (Operational
Technology) protocols (e.g. MTConnect, ModBus etc.) to IT (Information Technology) protocols (MQTT,
REST etc.) and then transmit the data, using wireless (cellular) technology, to the Data Center for
processing and analytics.
The Connectivity Gateway can also use traditional connectivity technology to capture & transmit data
e.g. Adaptors and Agents, instead of IoT device. The data can be transmitted over the network leased
lines, cables, mesh, WAN or SCADA network to the Data Center.

5. New Energy Strategic Planning Discussion Document for
“Measurement as a Service”
The following diagram depicts the CSC Connectivity Gateway: