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Petroleum Accountants Society of Oklahoma February 12, 2015

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Presentation on theme: "Petroleum Accountants Society of Oklahoma February 12, 2015"— Presentation transcript:

1 Petroleum Accountants Society of Oklahoma February 12, 2015
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

2 Production Reporting and Verification
Program Manager Kimbra Davis Lydia Barder Program Support Manager Louise Williams Onshore Production Reporting Manager Sonny Betancourt Onshore Team 1 Supervisor Luke Lundmark Onshore Team 2 Supervisor Susan Long Offshore Production Vicky Stafford Offshore Team 1 Supervisor Vacant Offshore Team 2 Supervisor Ken Stamper Production Inspection and Verification Manager

3 Topics Production Reporting Requirements System Considerations
Production Inspection and Verification Initiatives

4 Production Reporting Requirements
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 § ) Reports are due electronically to ONRR approximately 45 days after the production month ends — January OGOR is due March 15th The operator does not have to report a well in drilling status unless there is associated test production 3 3

5 Surface Location Considerations

6 Venting and Flaring Requirements
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 All of the production reporting Appendices can be found at Disposition/Adjustment Codes are in Appendix I May 7, 2010, Dear Reporter Letter on reporting requirements for flaring and venting is at

7 Oil Volumes Reported on the OGOR
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 guidance Transportation losses Approved measurement point Sales point into refinery Volume reported on OGOR and 2014

8 Enforcement Process: OTRs and NONCs

9 System Considerations
Line Count Threshold Database Synchronization Top Fatal Reporting Errors Effective Date Challenges

10 Line Count Threshold Oil and Gas LLC
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 each Part B Up to 5,000 lines for each Part C

11 Database Synchronization

12 Top Fatal Error for FY Issue - OGORs not submitted to eCommerce in chronological order OGORs reject with edit 11030, “Beginning inventory total must match ending inventory total from prior report period” 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

13 Other OGOR Fatal Errors for FY 2014

14 ONRR System Well Eff Date
Effective Date Challenges 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 OGOR Result Reason 12/11/11 DRG 12/31/11 POW Accepted Well is in the system for the production month being reported and OGORs are accepted with any status. 11/30/11 OSI Not Accepted Well is in the system with a later effective date than the production month being reported. Not in ONRR System PGW Cannot accept a production report with wells not entered into the ONRR system through BLM or BSEE data transfer.

15 Effective Date Challenges
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.

16 Production Inspection and Verification Initiatives
Production Verification Reviews Measurement Inspection Team Support

17 Production Verification Reviews
OGOR C investigation/resolution of adjustments (Disposition Codes 42, 44, 45, 46, and 47) Validation of accurate accounting for abnormal operations Test Volumes Line Fill Pigging Analysis of offshore allocation systems Ongoing technology assessment – improve measurement accuracy and reporting Risk Model development – strategy to effectively, efficiently ensure accurate production reporting for high risk properties

18 Measurement Inspection Team Support
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 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

19 Tools for Assistance website Reporting/Paying – Production Reporting Minerals Production Reporter Handbook is the Handbooks page Oil and Gas Reporter Training Guide for Form ONRR-4054 (OGOR) is the Reporter Training page Production Reporting Contacts is the OGOR – Oil and Gas Operations Report (Form ONRR-4054) and Error Correction Contacts page Maintain Your System Access and Contact Information includes information on completing the EMARF and the ONRR-4444 Production Reporting References includes How to Resolve Errors documents, OGOR Video Training, Offshore FMP information, Reporting Codes, Reporter Letters, and Regulation links

20 Program Manager, Production Reporting and Verification
Contact Us: Kimbra Davis Program Manager, Production Reporting and Verification (303) Industry Compliance Accurate Revenues & Data Professionalism & Integrity

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