Transcript NGL Royalty Regime Change

Natural Gas Liquids Royalty
Framework Changes
Production Month 2002-10
Implementation
Agenda
Introductions
Background
Key Outcomes
Implementation Details
In-Stream Component (ISC) Reporting
Royalty Calculation using Facility Averages
Facility Average Illustration
NGL Royalty Framework Changes
- May, 2004
2
List of Acronyms/Abbrev.
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
BT
C1
C2
CAP
CGF
CSO
FAP
FARR%
GJ
GP
GRP
GS
Battery
Methane
Ethane
Corporate Average Price
Corporate Gas Factor
Common Stream Operator
Facility Average Price (Net of Gas Trans Adj)
Facility Average Royalty Rate
gigajoules
Gas Plant
Gas Reference Price
Gathering System
NGL Royalty Framework Changes
- May, 2004
3
List of Acronyms/Abbrev.…
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
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





IATD
IF
ISC
MS
NGL
OAF
PL
R%
RARR%
RGA
Registry
SAF
Intra-Alberta Transportation Deduction
Injection Facility
In-Stream Component Within Residue Gas
Meter Station
Natural Gas Liquids
Owner Allocation Factor
Pipeline
Royalty Rate
Raw Gas Average Royalty Rate
Raw Gas Allocation
The Petroleum Registry of Alberta
Stream Allocation Factor
NGL Royalty Framework Changes
- May, 2004
4
Background
Policy Announcement Dec 1999 to align royalty
framework with Industry and market
developments.
Key Changes:
Distinct royalty treatment for recovered Ethane (Field
Ethane)
Royalty recognition of NGL components (In-Stream
Components or ISC) in residue gas
Sub-Committees (Industry/Gov’t) established
between Jan 2000 – July 2001 to define
business rules.
NGL Royalty Framework Changes
- May, 2004
5
Key Outcomes
 Field Ethane will be assessed at C2 R% and C2 Net
Reference Price ($/gj) that will be different from the Gas
R% and Gas Net Reference Price.
 Royalty rates for Propane and Butanes will change from
the flat rate of 30%. Subject to an expected maximum
rate of 30% and minimum rate of 15%, the following
formula will be used:
R% = 15SP + 40(PP-SP)
PP
SP is the select price for the product
PP is the Propane par price for the Propane royalty rate and the
Butanes par price for the Butanes royalty rate.
NGL Royalty Framework Changes
- May, 2004
6
Key Outcomes…..Cont’d
 No change to royalty trigger points.
 Gas royalty will be assessed on the basis of In-Stream
Components (ISC). This will be achieved by assessing
royalty on product GAS using facility averages (rate and
price) that are based on the ISC compositions of the
royalty trigger volumes.
 Gas royalty for CAP clients will be based on facility
average rates but valuation continues to be based on
CAP, where monthly CAP estimate is Client CGF x GRP.
NGL Royalty Framework Changes
- May, 2004
7
Key Outcomes…..Cont’d
 Each ISC product will have its own distinct royalty rate,
reference price and adjusted IATD which will be used in
the facility average royalty rate and price calculations.
 Department of Energy (DOE) will invoice royalty on
product GAS using the SAF/OAF and volumetric details
from the Registry.
 Implementation coinciding with the Registry –
Production Month 2002-10.
NGL Royalty Framework Changes
- May, 2004
8
Gas & ISC Relationship
ISC View of Gas
Gas View
 Product
Code
Product
 Gas*
Gas












 *has old/new vintage
Code
Methane ISC*
C1-IC
Ethane ISC*
C2-IC
Propane ISC
C3-IC
Butanes ISC
C4-IC
Pentanes Plus ISC*
C5+-IC
Carbon Dioxide ISC**
CO2-IC
Helium ISC**
HE-IC
Hydrogen ISC**
H2-IC
Nitrogen ISC**
N2-IC
Oxygen ISC**
O2-IC
Sulphur ISC**
Sul-IC
Hydrogen Sulphide ISC**H2S-IC
 *has old/new vintage
 **inert
NGL Royalty Framework Changes
- May, 2004
9
Implementation Details
At Implementation
Current
C2 R% = Gas R%
C2 Ref Price = GRP
($/gj)
Gas Royalty based on
Gas GJ @ Gas R% and
GRP
Gas GJ subject to
Old/New Gas R%
C2 R%  Gas R%
C2 Ref Price = C2-IC
Ref Price ($/gj)
Gas Royalty based on
Gas GJ @ Gas R%
(=FARR%) and FAP
Gas GJ subject to
Old/New Gas R%
(=FARR%)
NGL Royalty Framework Changes
- May, 2004
10
FARR% & FAP for Gas
 Facility level royalty rate and valuation price for Gas.
 Used to assess royalty trigger Gas quantities at charge
facility.
 Uses the ISC compositions (excluding inerts) of royalty
trigger quantities at the charge facility to calculate that
facility’s weighted average royalty rate and valuation
price (see example illustration).
 ISC compositions are reported to the Registry by meter
station operators, common stream operators and some
facility operators (see Registry ISC Reporting Table
slide).
NGL Royalty Framework Changes
- May, 2004
11
FARR% & FAP for
Gas…..Cont’d
 The royalty rates for the individual ISC products will be
the same as the royalty rates for the extracted products
(e.g. C2-IC R% = C2 R%).
 The vintage for the individual ISC products will be the
same as the old/new vintage for the extracted products.
 The reference prices for the individual ISC products will
differ from the reference prices of Gas and the extracted
products (exception C2 Ref Price=C2-IC Ref Price).
NGL Royalty Framework Changes
- May, 2004
12
Low Productivity
Allowance Adjustment
 No change to low productivity well allowance eligibility.
 Low productivity allowance adjustment continues to
apply to eligible Gas and Ethane production.
 For eligible Gas and Ethane production, the Crown
royalty rate is calculated as:
R% = RC – (RM – 5) x (16.9 – ADP)2
16.92
ADP is the average daily production of gas for the well event for
the production month (103m3).
RC is the Old/New FARR if production is Gas and the Ethane
Old/New royalty rate if production is Ethane.
RM is the Old/New royalty rate for Methane ISC
NGL Royalty Framework Changes
- May, 2004
13
Registry ISC Reporting
 ISC volume and energy information are reported in the
Registry, as a further breakdown of the Gas volume and
energy.
 ISC factors are reported on Registry RGA submissions.
 Submissions to the Registry can be online entry or batch
file entry, along with other volumetric submissions.
 Not all volumetric activities in the Registry require ISC
reporting (see Registry ISC Reporting Table slide).
NGL Royalty Framework Changes
- May, 2004
14
Registry ISC
Reporting…..Cont’d
 ISC volume and energy must be reported to 3 decimal
places for desired precision.
 Where ISC reporting is required, aggregate ISC volume
and energy must equal corresponding Gas volume and
energy (within a tolerance of 0.100 103m3 and 1.000 gj)
or both ISC and Gas volumetric submissions will be
rejected.
 ISC heat value (gj/103m3) must be within the specified
heat value range for each ISC product (see ISC Heat
Range Table slide).
NGL Royalty Framework Changes
- May, 2004
15
ISC Heat Range Table
ISC Product Code
C1-IC
C2-IC
C3-IC
C4-IC
C5+-IC
CO2-IC
H2-IC
H2S-IC
HE-IC
N2-IC
O2-IC
SUL-IC
ISC Product Description
Methane
Ethane ISC
Propane ISC
Butanes ISC
Pentanes Plus ISC
Carbon Dioxide ISC
Hydrogen ISC
Hydrogen Sulphide ISC
Helium ISC
Nitrogen ISC
Oxygen ISC
Sulphur ISC
Heat Value Range
36.000 – 38.700
63.000 – 69.000
91.000 – 97.000
118.500 – 124.700
145.700 – 290.000
0.000 – 0.000
9.000 – 15.000
20.800 – 26.800
0.000 – 0.000
0.000 – 0.000
0.000 – 0.000
0.000 – 0.000
NGL Royalty Framework Changes
- May, 2004
16
Registry ISC Reporting
Table
ISC Reporting Table Legend
AB Alberta
IF Injection Facility
BT Battery
IN Industrial
CO Commercial
MS Meter Station
DISP Disposition
PL Pipeline
EG Electrical Generation
RE Residential
GP Gas Plant
REC Receipt
GS Gathering System
R1/R2 Residential Pipeline
MC Miscellaneous
OT Other
CT Custom Treatment Plant
NGL Royalty Framework Changes
- May, 2004
17
Registry ISC Reporting
Table…..Cont’d
For activity at reporting facility and from/to location, submitter must report
ISC, along with the Gas volumetric submission to the Registry.
Submitter
Reporting Facility
Activity
From/To Location
Pipeline/Meter
Station Operator
AB MS subtype 631
or 637 where
Registry auto
population flow
through is not
elected
DISP
AB PL auto-created
REC (no ISC)
Common Stream
Operator
AB MS subtype 631
or 637 where
Registry auto
population flow
through is not
elected
REC
AB BT/GS/GP/IF
auto-created DISP
NGL Royalty Framework Changes
- May, 2004
18
Registry ISC Reporting
Table…..Cont’d
For activity at reporting facility and from/to location, submitter must report ISC,
along with the Gas volumetric submission to the Registry.
Submitter
Reporting Facility
Activity
Pipeline/Meter Station
Operator
AB MS subtype 631 or DISP
637 where Registry
auto population flow
through is elected
AB PL auto-created
REC (no ISC)
AB MS auto-created
REC
AB BT/GS/GP/IF autocreated DISP
Pipeline/Meter Station
Operator
AB MS subtype 632 or DISP
638 where Registry
auto population flow
through is not elected
AB BT/GS/GP/IF autocreated REC
(ISC created for IF
only)
NGL Royalty Framework Changes
- May, 2004
From/To Location
19
Registry ISC Reporting
Table…..Cont’d
For activity at reporting facility and from/to location, submitter must report ISC,
along with the Gas volumetric submission to the Registry.
Submitter
Reporting Facility
Activity
Common Stream
Operator
AB MS subtype 632 or REC
638 where Registry
auto population flow
through is not elected
AB PL auto-created
DISP (no ISC)
Common Stream
Operator
AB MS subtype 632 or REC
638 where Registry
auto population flow
through is elected
AB PL auto-created
DISP (no ISC)
AB MS auto-created
DISP
AB BT/GS/GP/IF autocreated REC
(ISC created for IF
only)
NGL Royalty Framework Changes
- May, 2004
From/To Location
20
Registry ISC Reporting
Table…..Cont’d
For activity at reporting facility and from/to location, submitter must report ISC,
along with the Gas volumetric submission to the Registry.
Submitter
Reporting Facility
Activity
Pipeline/Meter Station
Operator
AB MS subtype 633 or DISP
639 where Registry
auto population flow
through is not elected
AB BT/GS/GP/IF autocreated REC
(ISC created for IF
only)
Common Stream
Operator
AB MS subtype 633 or REC
639 where Registry
auto population flow
through is not elected
AB PL auto-created
DISP (no ISC)
NGL Royalty Framework Changes
- May, 2004
From/To Location
21
Registry ISC Reporting
Table…..Cont’d
For activity at reporting facility and from/to location, submitter must report
ISC, along with the Gas volumetric submission to the Registry.
Submitter
Reporting Facility
Activity
From/To Location
Pipeline/Meter
Station Operator
AB MS subtype 633
or 639 where
Registry auto
population flow
through is elected
DISP
AB PL auto-created
DISP (no ISC)
AB MS auto-created
REC
AB/BC/SK/Any
AB BT/GS/GP/IF
auto-created REC
(ISC created for IF
only)
Mainline Straddle
Plant Operator
AB GP subtype
Mainline Straddle
REC
AB BT/GS/GP autocreated DISP
NGL Royalty Framework Changes
- May, 2004
22
Registry ISC Reporting
Table…..Cont’d
For activity at reporting facility and from/to location, submitter must report
ISC, along with the Gas volumetric submission to the Registry.
Submitter
Reporting Facility
Activity
From/To Location
Field Straddle Plant
Operator
AB GP subtype Field
Straddle (terminated
effective 2006-01)
REC
AB BT/GS/GP autocreated DISP
Injection Facility
Operator
AB IF
REC
AB/BC/SK Any
(except MS)
Battery, Gathering
System or Gas Plant
Operator
AB BT/GS/GP
DISP
Non reporting AB
MS/PL
Battery, Gathering
System or Gas Plant
Operator
AB BT/GS/GP
DISP
AB RE/CO/IN/EG/R1/
R2/MC/OT/CT
NGL Royalty Framework Changes
- May, 2004
23
Registry ISC Reporting
Table…..Cont’d
For activity at reporting facility and from/to location, submitter must report
ISC, along with the Gas volumetric submission to the Registry.
Submitter
Reporting Facility
Activity
From/To Location
Battery, Gathering
System or Gas Plant
Operator
AB BT/GS/GP
DISP
Any non AB location
Raw Gas Seller
Report ISC factors of raw gas stream on RGA submission.
NGL Royalty Framework Changes
- May, 2004
24
ISC Volumetric Submission
in Registry
Illustration of ISC Reporting at MS
NGL Royalty Framework Changes
- May, 2004
25
ISC Volumetric Submission
in Registry
Illustration of ISC Reporting at MS
NGL Royalty Framework Changes
- May, 2004
26
Raw Gas Sale and ISC
Factor Reporting on RGA
 Raw Gas Sales are identified on Registry RGA
submissions.
 Raw Gas Sales that are subsequently processed or used
as lease fuel are assessed royalty at RARR%, rather
than FARR%.
 All other Raw Gas Sales will be assessed at FARR %.
 RARR% is based on the ISC factors (excluding inerts)
identified by the seller on the RGA, rather than the ISC
composition of the facility.
 Old/New RARR% =  (ISC Product Factor on RGA x ISC
Product Old/New R%) /  ISC Product Factor on RGA
(see example illustration).
NGL Royalty Framework Changes
- May, 2004
27
Raw Gas Deliveries To
Injection
 Crown royalty for raw gas delivered to injection
(reported in Registry at a Battery or Gathering System
as a disposition to an Injection Facility) is assessed at
the FARR% of the Injection Facility and the FAP of the
Reproducing Facility.
NGL Royalty Framework Changes
- May, 2004
28
Royalty Variables for Crown Royalty
and Injection Credit Calculations
Charge Type
Product
Unit
R%
Valuation Price
Crown Royalty
Gas
GJ
FARR% of Producing
Facility
(based on all ISC
royalty trigger
dispositions at
producing facility)
FAP of Producing
Facility
(based on all ISC
royalty trigger
dispositions at
producing facility)
Injection Credit
Gas
GJ
FARR% of Injection
Facility
(based on all ISC
royalty trigger
receipts at
injection facility)
FAP of Reproducing
Facility
(based on all ISC
royalty trigger
dispositions at
NGL Royalty Framework Changes
- May, 2004
reproducing
facility)
29
Royalty Variables for Crown Royalty and
Injection Credit Calculations…..Cont’d
Charge Type
Product
Unit
R%
Valuation Price
*Crown Royalty
Exceptions Raw Gas Delivered
to Injection
Gas
GJ
FARR% of Injection
Facility
(based on all ISC
royalty trigger
receipts at
injection facility)
FAP of Reproducing
Facility
(based on all ISC
royalty trigger
dispositions at
RARR%
(based on ISC
composition factors
on RGA)
80% GRP
*Crown Royalty
Exceptions Raw Gas Sale
Subsequently
Processed
Gas
GJ
NGL Royalty Framework Changes
- May, 2004
reproducing
facility)
30
Royalty Variables for Gas Crown
Royalty and Injection Credit…..Cont’d
Charge Type
Product
Unit
R%
Valuation Price
*Crown Royalty
Exceptions Raw Gas Sale Used
as Lease Fuel
Gas
GJ
RARR%
(based on ISC
composition factors
on RGA)
100% GRP
*Crown Royalty
Exceptions Special Agreements
e.g. Medicine Hat
Agreement
Gas
GJ
FARR% of Producing % GRP based on
Facility
Agreement
(based on all ISC
royalty trigger
dispositions at
producing facility)
NGL Royalty Framework Changes
- May, 2004
31
Rate/Price Defaults
If no….
Use…
RARR%
FARR%
FAP (for Crown royalty)
FARR%
C1-IC R%
100% GRP
FAP of Reproducing
Facility (for injection
FAP of Injection Facility
(based on all ISC royalty
trigger receipts at
injection facility)
credit and Crown royalty
of raw gas delivered to
injection)
If defaults are used, they will be identified on the Default Report. (see
sample report)
NGL Royalty Framework Changes
- May, 2004
32
ISC Balancing and FARR%/FAP
Using ISC Default
Effective December 2004 calendar month, the
ISC receipts at meter stations reported by meter
station operators or common stream operators
(CSO), must equal the meter station disposition
activities reported by pipeline operators. Meter
station receipts impact the FARR% and FAP
calculations.
For ISC imbalances that existed prior to this
change, the DOE continues to perform ISC
Balancing and uses the ISC default in calculating
the FARR%/FAP calculations.
NGL Royalty Framework Changes
- May, 2004
33
ISC Balancing and FARR%/FAP
Using ISC Default…..Cont’d
 If there is a discrepancy in meter station receipts for an
ISC product, the C5+-IC R% and C5+-IC Net Ref Price
will be used for that product in the FARR% and FAP
calculations. (see example illustration)
 The meter station operator or CSO who submitted the
meter station receipts will receive a discrepancy notice
from DOE. Notice is generated on day 35 following
month of production. (see sample report)
 Royalty clients will be notified in Default Report and in
supporting reports of FARR%/FAP calculations where
ISC default values have been used. (see sample report)
NGL Royalty Framework Changes
- May, 2004
34
FARR%, RARR%, FAP
Illustration
 See Excel attachment
NGL Royalty Framework Changes
- May, 2004
35
FARR% Calculation for Gas
Old FARR% =
 (ISC Product Energy x ISC Product Old R%) /
 ISC Product Energy
New FARR% =
 (ISC Product Energy x ISC Product New R%) /
 ISC Product Energy
 ISC product energy refers to ISC dispositions at the charge
facility that are royalty triggers. If charge facility is an
injection facility, ISC product energy refers to ISC receipts
rather than dispositions.
 Energy from inerts are not included in FARR% calculation.
NGL Royalty Framework Changes
- May, 2004
36
RARR% Calculation for raw
gas sales
Old RARR% =
 (ISC Product Factor on RGA x ISC Product Old R%) /
 ISC Product Factor on RGA
New RARR% =
 (ISC Product Factor on RGA x ISC Product New R%) /
 ISC Product Factor on RGA
 ISC factors of inerts are not included in RARR% calculation.
NGL Royalty Framework Changes
- May, 2004
37
FAP Calculation for Gas
FAP =
Facility Reference Price – Facility Gas Transportation
Adjustment
 Facility Reference Price =
Σ (ISC Product Energy x ISC Product Ref Price) /
Σ ISC Product Energy
 Facility Gas Transportation Adjustment =
[Royalty Trigger Factor – 1] x Facility Adjusted IATD
 Royalty Trigger Factor =
Σ (ISC Product Energy x Meter Station Factor) /
Σ ISC Product Energy
NGL Royalty Framework Changes
- May, 2004
38
FAP Calculation for
Gas…..Cont’d
 Facility Adjusted IATD =
Σ (ISC Product Energy x Adjusted IATD of ISC) /
Σ ISC Product Energy
 ISC product energy refers to ISC dispositions at the charge
facility that are royalty triggers. If charge facility is an
injection facility, ISC product energy refers to ISC receipts
rather than dispositions.
 ISC product energy in FARR% and FAP calculation is the
same.
 If the delivery/receipt location of the ISC product energy is
not an included pipeline meter station, the meter station
factor for the product energy will be 1.00.
NGL Royalty Framework Changes
- May, 2004
39
Sample Crown Royalty
Calculation Detail Report
CROWN ROYALTY DETAIL
CALCULATION
Invoice #: 00000180171
Issue Date:
Royalty Client:
Name:
Facility:
Production Period:
2002-11-30
0A0A
BOB'S RESOURCES LTD
AB-GS-0003941
2002-09
Royalty Reference
Product Price
GAS
4.29
Price
Adjustment
Royalty Payer Code:
Name:
Address:
Raw
Gas
Factor
Royalty Client_Volumetric_Totals
Product
Quantity
Heat
Corporate
Gas
Adjusted
Factor
IATD
0.111
Crown
Interest%
Vintage
Type
%
Charge Type: Crown Royalty
GAS
1063.3
42402
759.5
31141
100.0000000
100.0000000
OLD
100
790.9
31540
100.0000000
Rate
Crown_Royalty
Quantity
Heat
Gross
Royalty $
Conversion
Factor
1
1
Royalty
Exemption $
34.85075
370.56
14777.50
63,543.24
0
265.84
10899.40
46,758.21
0
10991.93 -47,265.28
0
Stream Id:
OLD
100
Charge Type: Injection Credit
GAS
Transportation Fractionation Valuation
Adjustment
Rate $
Price
-0.01
4.30
Stream Id: AB-WI-100142201914W400
Charge Type: Provisional Assessment
GAS
Royalty
Trigger
Factor
0.95
35.00000
Stream Id: AB-WI-1D0020204302W400
NEW
100
34.85075
275.63
TOTAL
FACILITY:
CHARGE TYPE:
AB-GS-0004841
Crown Royalty
Provisional Assessment
EOR Adjustment
Injection Credit
INTEREST CHARGE
NGL Royalty Framework Changes
- May, 2004
40
Sample Crown Royalty
Calculation Detail Report
(Raw Gas)
CROWN ROYALTY DETAIL
CALCULATION
Invoice #: 00000180171
Issue Date:
Royalty Client:
Name:
Facility:
Production Period:
Royalty
Product
GAS
GAS
Reference
Price
3.33
3.33
2002-11-30
0A0A
BOB'S RESOURCES LTD
AB-GS-0004841
2002-09
Price
Adjustment
Raw
Gas
Factor
0.80
Royalty Client_Volumetric_Totals
Product
Quantity
Heat
Crown
Interest%
Royalty Payer Code:
Name:
Address:
FAP,
Corporate
Gas
Adjusted
Factor
IATD
0.290
0.290
Vintage
Type
%
Charge Type: Crown Royalty
GAS
25.6
1091
100.0000000
333.3
13176
100.0000000
NEW
100
59.7
2422
100.0000000
NEW
100
15.9
680
100.0000000
Crown_Royalty
Quantity
Heat
Gross
Royalty $
Royalty
Exemption $
34.80211
8.91
379.69
1,251.16
0
35
116.66
4611.60
15,356.63
0
Stream Id: AB-IS-0010400
NEW
29.37
NEW
29.37
Charge Type: Injection Credit
GAS
Rate
80% GRP,
100% GRP,
Stream Id:
Charge Type: EOR Adjustment
GAS
Transportation Fractionation Valuation Conversion
Adjustment
Rate $
Price
Factor
0.03
3.30
1
0.00
2.66
1
Stream Id: AB-WI-10141304220W400
Charge Type: Provisional Assessment
GAS
Royalty
Trigger
Factor
1.12
1.00
34.80211
6.10
247.56
659.50
0
69.51
185.16
0
Stream Id: AB-IS-0000400
34.80211
1.63
TOTAL
FACILITY:
CHARGE TYPE:
FARR%,
RARR%,
C1-IC R%
AB-GS-0004841
Crown Royalty
Provisional Assessment
EOR Adjustment
Injection Credit
INTEREST CHARGE
NGL Royalty Framework Changes
- May, 2004
41
Sample FARR Report
Facility Average Royalty Rate (FARR) Supporting Details
Invoice #:00000146038
Issue Date: 2000-11-30
Royalty Client: 0JPA
Name: FRANKS DRILLING
Facility
AB GP 0123456
Prodctn
Period
2002-10
Vintage
Type
OLD
Royalty Payer: 0JPA
Name: FRANKS DRILLING
Address: 350 7 AVE SW SUITE 4000
RED DEER, AB
Product
C1-IC
C2-IC
C3-IC
C4-IC
C5+-IC
AB GP 0123456
2002-10
NEW
C1-IC
C2-IC
C3-IC
C4-IC
C5+-IC
Delivery
Location
AB GP 1234567
AB IF 1234567
AB MS 1234567
AB GP 1234567
AB IF 1234567
AB MS 1234567
AB GP 1234567
AB IF 1234567
AB MS 1234567
AB GP 1234567
AB IF 1234567
AB MS 1234567
AB GP 1234567
AB
AB
AB
AB
AB
AB
AB
AB
AB
AB
AB
AB
AB
GP
IF
MS
GP
IF
MS
GP
IF
MS
GP
IF
MS
GP
1234567
1234567
1234567
1234567
1234567
1234567
1234567
1234567
1234567
1234567
1234567
1234567
1234567
Out of
Balance?
Y
Y
Heat (GJ)
Royalty Rate %
100.000
35.00000%
200.000
35.00000%
50.000
35.00000%
20.000
35.00000%
35.000
35.00000%
80.000
35.00000%
100.000
35.00000%
200.000
35.00000%
50.000
35.00000%
200.000
35.00000%
300.000
35.00000%
175.000
43.55748%
200.000
43.55748%
1,710.000
100.000
200.000
50.000
20.000
35.000
80.000
100.000
200.000
50.000
200.000
300.000
175.000
200.000
1,710.000
28.64423%
28.64423%
28.64423%
30.00000%
30.00000%
30.00000%
30.00000%
30.00000%
30.00000%
30.00000%
30.00000%
32.00883%
32.00883%
Reference Number: 3475153
Base Royalty
Heat (GJ)
35.000
70.000
17.500
7.000
12.250
28.000
35.000
70.000
17.500
70.000
105.000
76.226
87.115
630.591
28.644
57.288
14.322
6.000
10.500
24.000
30.000
60.000
15.000
60.000
90.000
56.015
64.018
515.788
Avg.
Royalty
Rate %
36.87664%
30.16304%
Page 5
NGL Royalty Framework Changes
- May, 2004
42
Sample RARR Report
NGL Royalty Framework Changes
- May, 2004
43
Sample FAP Report
NGL Royalty Framework Changes
- May, 2004
44
Sample Default Report
CROWN ROYALTY CALCULATION
DEFAULTS REPORT
Billing Period:
Issue Date:
Royalty Payer Name:
Royalty Payer Id:
Invoice Number:
2002-10-01
2002-12-23
FRANK'S DRILLING
0066
143241234
Charge
Type
Facility
Production Default
Stream Id Period
Item
Royalty Client: 0066
FRANK'S DRILLING LTD
Crown Royalty
AB-GP-0001004
WG1
2002-05
Crown Royalty
AB-BT-1330492
UN01112
2002-06
Crown Royalty
AB-GS-0002228
UN00911
2002-07
Crown Royalty
AB-GS-0002228
UN00911
2002-08
Crown Royalty
AB-GS-0002228
UN44855
2002-09
Crown Royalty
AB-GS-0002228
2002-10
Crown Royalty
AB-GS-0002228
2002-10
Crown Royalty
AB-GS-0002228
2002-10
Injection Credit
AB-GS-0002228
2002-10
Royalty Trigger
Crown Interest
Crown Interest
Royalty Trigger
Royalty Trigger
Facility Averages
FARR
FAP
FAP
Form
TC20
Exhibit A
Exhibit A
TC20
TC20
Volumetric
Volumetric
Volumetric
Volumetric
Reference Number: 87931
Default
Description
TC20 not filed: 0.0
100.0% Crown Interest
100.0% Crown Interest
TC20 not filed: 0.0
TC20 not filed: 0.0
ISC Imbalance: C5+-IC
ISC not filed: C1-IC
ISC not filed: GRP
ISC not filed at Reproducing
Facility: FAP at IF
Page 1
NGL Royalty Framework Changes
- May, 2004
45
Sample ISC Balancing
Discrepancy Notification
NGL Royalty Framework Changes
- May, 2004
46
The End
NGL Royalty Framework Changes
- May, 2004
47