Lorraine Corona Manager, Data Mining Services

Disclaimer The statements or opinions expressed in all ONRR presentations and panel discussions at the 2017 PASO-Tulsa Federal/Indian Royalty Compliance Workshop do not necessarily represent the views of ONRR or the Department of the Interior.

Learning Objective The attendee will be aware of ONRR’s Data Mining Organization, the 2017 workplan, and general guidelines regarding Data Mining requests upon completion of this course.

Data Mining Organization

Data Mining FY2017 Workplan Volume Comparison 2015 sales months through current (prior months if missing $) New exceptions generated in prior month Some carry over of sales months that are in process Agreement Approval Monitoring Review of new approved/revised agreements 90 days after approval - Review of adjustments back to agreement effective date All sales periods (coordinated with VC, STRAC & ACM)

Data Mining FY2017 Workplan (cont’d) Net Negatives 2015 sales months through current Future edit Repetitive reporting Pricing Offshore GOM Oil – warning edit Offshore GOM Gas – Future edit Onshore Oil and Gas

Data Mining FY2017 Workplan (cont’d) Processed Gas PC03 w/o PC07 2015 Sales months Trending for Anomalies Anomalies for all sales periods

Data Mining Data Requests & Preliminary Determinations 30 day turn around When multiple requests are received, communicate reasonable dates for responding Data Miners have been instructed to send closure notices once exceptions are resolved or issue is closed Orders will be sent if due dates are missed

Data Mining Orders and Notices of Non-Compliance Orders will be issued if Data Request or Prelim is not responded to by due date Extensions cannot be granted on Orders Appeal rights apply Failure to respond to an Order will result in a Notice of Non-Compliance Extensions cannot be granted on NONCs

Data Mining Data Mining and Major portion/Dual accounting Data Mining and Pending Agreement Approvals ONRR cannot accept royalties on an unapproved agreement Until an agreement is approved, royalties on Federal/Indian wells must be reported as lease basis If you report less than the full royalties on a Federal/Indian well, you may be asked to correct your reporting When the agreement is approved, adjustments will need to be made to both the OGOR and 2014 retroactive to the agreement effective date

Data Mining Training Training Gas Plant Statements Sales Contracts Royalty Equation Overlapping Agreements Leases and Agreements POP Contracts Pipeline Fuel Enforcement Valuation Dual Accounting Etc.