Transcript Document

U.S. Department of Interior
Office
Revenue
(ONRR)
OfficeofofNatural
NaturalResources
Resources
Revenue
Production Reporting and Verification
Presented by:
Kimbra Davis
Program Manager for Production Reporting and Verification
Petroleum Accountants Society of Oklahoma
February 12, 2015
Industry Compliance
Accurate Revenues & Data
Professionalism & Integrity
Production
and
Verification
Office
of NaturalReporting
Resources
Revenue
Lydia Barder
Program Support
Manager
303-231-3570
303-231-3514
Program Manager
Kimbra Davis
Louise Williams
Onshore Production
Reporting Manager
303-231-3439
Sonny Betancourt
Onshore Team 1 Supervisor
303-231-3628
Luke Lundmark
Onshore Team 2 Supervisor
303-231-3532
Vicky Stafford
Susan Long
Offshore Production
Reporting Manager
303-231-3079
Offshore Team 1 Supervisor
303-231-3388
Vacant
Offshore Team 2 Supervisor
Ken Stamper
Production Inspection and
Verification Manager
303-231-3042
2
Office of Natural Topics
Resources Revenue
o
o
o
Production Reporting Requirements
System Considerations
Production Inspection and Verification
Initiatives
3
Production
Office
of NaturalReporting
ResourcesRequirements
Revenue
o
If you operate a Federal or Indian oil and gas lease or
agreement, you must file an OGOR each month for
each active lease or agreement when there are wells
that are not permanently plugged or abandoned or
when inventory exists for the property (paraphrased
from 30 CFR §1210.102)
o
Reports are due electronically to ONRR approximately
45 days after the production month ends
— January OGOR is due March 15th
o
The operator does not have to report a well in drilling
status unless there is associated test production
4
Location
Considerations
OfficeSurface
of Natural
Resources
Revenue
5
Venting
and Resources
Flaring Requirements
Office
of Natural
Revenue
o
Effective production month July 2010:
•
•
•
•
Flared oil-well gas = disposition code 21
Flared gas-well gas = disposition code 22
Vented oil-well gas = disposition code 61
Vented gas-well gas = disposition code 62
o
All of the production reporting Appendices can be found at
http://www.onrr.gov/ReportPay/Handbooks/default.htm
Disposition/Adjustment Codes are in Appendix I
o
May 7, 2010, Dear Reporter Letter on reporting requirements
for flaring and venting is at
http://www.onrr.gov/ReportPay/PDFDocs/20100507.pdf
6
OilofVolumes
Reported on
the OGOR
Office
Natural Resources
Revenue
Royalty due on the volume removed or sold from the lease at the
BLM or BSEE approved point of measurement
○ Reported in barrels of clean oil of 42 standard U.S. gallons at 60 °F
○ Corrected for Basic Sediment and Water (BS&W) and other impurities
○ Report American Petroleum Institute (API) oil gravities in accordance with
standard industry procedures after correction to 60 °F
○ In some cases, you may be able to take a transportation allowance on actual or
theoretical losses between the approved measurement point and the sales point
Contact ONRR’s Asset Valuation Office at [email protected] for guidance
Approved
measurement
point
Transportation losses
Sales point into
refinery
Volume reported on OGOR and 2014
7
Enforcement
OTRs
and NONCs
Office
of Natural Process:
Resources
Revenue
8
Office ofSystem
Natural Considerations
Resources Revenue
o
o
o
o
Line Count Threshold
Database Synchronization
Top Fatal Reporting Errors
Effective Date Challenges
9
Line
Count
Threshold
Office of Natural Resources Revenue
K8500
Oil and Gas LLC
5/2013 Manning Unit
Up to 5,000 L/A - Prod Month
Combination Lines
Up to 5,000 lines for
each Part A
Up to 5,000 lines for
Up to 5,000 lines for
10
each Part B
each Part C
Office Database
of Natural Synchronization
Resources Revenue
11
TopofFatal
Error
for FY
2013-2014
Office
Natural
Resources
Revenue
50,000
•
Issue - OGORs not submitted to
eCommerce in chronological order
40,000
•
OGORs reject with edit 11030, “Beginning
inventory total must match ending
inventory total from prior report period”
30,000
•
Because of the lack of date order staging
in the PeopleSoft (PS) OGOR validation
process, ONRR has a large number of
rejected OGORs due to edit 11030
•
In 2014, we implemented a nightly
validation process. Sometimes multiple
validation runs are required to eliminate
the edit for multiple months of OGOR
submissions.
•
System Change Request to be
implemented in 2015 to permanently
resolve the problem
45,305
42,725
2013
2014
20,000
10,000
0
12
Number of Errors
Other
OGORResources
Fatal Errors
for FY 2014
Office
of Natural
Revenue
20,000
19,000
18,000
17,000
16,000
15,000
14,000
13,000
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2014
Some of these errors are operator
related and some are due to timing
of the BLM/ONRR database
synchronization
(11259) Well not active for
given L/A and report period
(11527) Future Well operator
exists - Can not update well
operator through OGOR
validation
(11042) Another document in
staging with the same
authorization date
(11260) Well not found in
database
(11285) Invalid well status for
other than monthly reporter
(11036) Add line already exists
on OGOR in accepted tables
18,952
8,938
7,920
6,050
5,179
5,112
13
Date Challenges
Office Effective
of Natural Resources
Revenue
Updates of well reference information and OGOR acceptance can
be affected by dates
ONRR
System
Well Eff
Date
ONRR
Well
Status
OGOR
Production
Date
OGOR
Status
12/11/11
DRG
12/31/11
POW
OGOR
Result
Reason
Accepted Well is in the system for the
production month being
reported and OGORs are
accepted with any status.
12/11/11
DRG
11/30/11
OSI
Well is in the system with a
Not
Accepted later effective date than the
production month being
reported.
Not in
ONRR
System
12/31/11
PGW
Cannot accept a production
Not
Accepted report with wells not entered
into the ONRR system through
BLM or BSEE data transfer.
14
Date Challenges
Office Effective
of Natural Resources
Revenue
Reasons and solutions for OGORs being rejected because of well
information and dates:
○ BLM or BSEE has not approved the sundry
○ Update of well information in BLM system or BSEE system is
delayed
○ Operator has not submitted sundry paperwork to BLM or BSEE
If BLM or BSEE has completed and approved the sundry request,
including identifying the Lease/Agreement on which the operator
is trying to report, the operator can send the approved sundry to
their PRV error correction contact for manual input into our
system to expedite the acceptance of OGORs.
15
Production
Inspection
and
Verification
Initiatives
Office of Natural Resources Revenue
○
Production Verification Reviews
○
Measurement Inspection Team Support
16
Production
Reviews
Office
of NaturalVerification
Resources Revenue
OGOR C investigation/resolution of adjustments
(Disposition Codes 42, 44, 45, 46, and 47)
o Validation of accurate accounting for abnormal operations
o
• Test Volumes
• Line Fill
• Pigging
Analysis of offshore allocation systems
Ongoing technology assessment – improve measurement
accuracy and reporting
o Risk Model development – strategy to effectively, efficiently
ensure accurate production reporting for high risk
properties
o
o
17
Measurement
Support
Office
of Natural Inspection
ResourcesTeam
Revenue
o
ONRR funded Measurement Inspection group began
inspections in 2013
• 3 BSEE measurement inspectors in Lafayette, Louisiana
• Issued 600 Incidents of Non-compliance (INCs) issued in FY
2014
• 2nd BSEE measurement inspection team planned
o
Future efforts include
•
•
•
•
Joint inspections with BSEE inspectors/ONRR engineers
Characterization/analysis of INCs
Operator Training/Seminars (collaborating with BSEE)
Similar cooperative agreement with BLM to establish agile
measurement inspection team under development
18
Tools Resources
for Assistance
Office of Natural
Revenue
www.onrr.gov website Reporting/Paying – Production Reporting
Minerals Production Reporter Handbook
http://www.onrr.gov/ReportPay/Handbooks/default.htm is the Handbooks page
Oil and Gas Reporter Training Guide for Form ONRR-4054 (OGOR)
http://www.onrr.gov/ReportPay/training/default.htm is the Reporter Training page
Production Reporting Contacts
http://www.onrr.gov/ReportPay/PDFDocs/operasgn.pdf is the OGOR – Oil and Gas
Operations Report (Form ONRR-4054) and Error Correction Contacts page
Maintain Your System Access and Contact Information
http://www.onrr.gov/ReportPay/access.htm includes information on completing the EMARF
and the ONRR-4444
Production Reporting References
http://www.onrr.gov/ReportPay/references.htm includes How to Resolve Errors documents,
OGOR Video Training, Offshore FMP information, Reporting Codes, Reporter Letters, and
Regulation links
19
U.S. Department of Interior
Office
Revenue
(ONRR)
OfficeofofNatural
NaturalResources
Resources
Revenue
Contact Us:
Kimbra Davis
Program Manager, Production Reporting and Verification
[email protected]
(303) 231-3514
20
Industry Compliance
Accurate Revenues & Data
Professionalism & Integrity