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