Production Reporting and Verification Lee-Ann Martin, Program Manager Production Reporting and Verification Petroleum Accountants Society of Oklahoma February 2017

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.

upon completion of this course. Learning Objective The attendee will be provided an overview of the Production Reporting and Verification department and its responsibilities upon completion of this course.

Production Reporting and Verification Lee-Ann Martin Program Manager 303-231-3313 Lydia Barder Program Support Manager 303-231-3570 Jonathan Swedin Onshore Production Reporting Manager 303-231-3028 Sonny Betancourt Onshore Team 1 Supervisor 303-231-3628 Luke Lundmark Onshore Team 2 Supervisor 303-231-3532 Mark Reynolds Onshore Team 3 Supervisor 303-231-3153 Susan Long Offshore Production Reporting Manager 303-231-3079 Vicky Stafford Offshore Team 1 Supervisor 303-231-3388 Crystel Sandos Offshore Team 2 Supervisor 303-231-3126 Ken Stamper Production Inspection and Verification Manager 303-231-3042

Topics Production Reporting Requirements OTR/NONC Process Expected System Changes due to BLM Rules FMPs Edits on FMPs Inventories System Capability Number of OGOR Lines Processed Monthly Tools for Assistance

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 §1210.102) 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

Enforcement Process: OTRs and NONCs

System Changes Question: What OGOR or other reporting changes are expected as a result of the final Federal oil and gas valuation rule (part of the Consolidated Federal Oil & Gas and Federal & Indian Coal Valuation Reform) or the new BLM oil/gas measurement regulations and the final rule entitled, “Waste Prevention, Production Subject to Royalties, and Resource Conservation”? 3 3

Facility Measurement Point FMP: Defined by ONRR as a facility that sells, stores, or transfers Federal or Indian production prior to or at the point of royalty determination; for example, gas plants, tank batteries, or other inventory storage points. A facility/measurement point is also defined as a metering point where Federal or Indian production is measured for sales, transfers, or royalty determinations; for example, LACT units or orifice meters. 3 3

Facility Measurement Point Question: Will the new BLM FMP numbers be required for reporting on the OGOR for both gas and oil? Answer: Yes Question: If so, will there be edits for the reporting of the FMP numbers? 3 3

Facility Measurement Point Question: It appears that oil inventories will be maintained at a lower level, resulting in the ending inventory from the prior month now being split to multiple “beginning inventory” FMP numbers. How does ONRR plan to deal with all of the error messages when this transition occurs? Answer: We are currently working on a plan to address this issue. 3 3

Facility Measurement Point Question: With the increase in the number of lines to be reported on the OGOR, does ONRR anticipate any problems due to ONRR’s line count limits? Answer: No 3 3

Total Production Lines Processed

Tools for Assistance 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

Program Manager, Production Reporting and Verification Contact Us: Lee-Ann Martin Program Manager, Production Reporting and Verification Leeann.martin@onrr.gov (303) 231-3313 15