The Petroleum Registry of Alberta REGISTRY INFORMATION SESSION June 2, 2004

The Petroleum Registry of Alberta Agenda 1.Introductions 2.Registry Manager Update -Pipelines/Meter Stations Enhancement Project Overview -IT Security Presentation Overview -Performance Enhancements Overview 3.DOE/EUB Update -Provisional Assessments and Non-Compliance 4.IRT Update -Partner Reporting -BC Business Update -Did You know? 5.Question & Answer

The Petroleum Registry of Alberta Registry Manager Update

The Petroleum Registry of Alberta Pipelines/Meter Stations Enhancement Project Overview Project Lifecycle Overview. Tasks and Deliverables. Stakeholder Approval Processes.

The Petroleum Registry of Alberta IT Security Presentation Overview Industry Information Session held May 13, Summary of information provided. CAPP may consider security audit of Registry system. Next envisioned meeting: November 2004.

The Petroleum Registry of Alberta Performance Enhancements Overview Information Technology Upgrades. –Hardware and Software Infrastructure. Other Performance Tuning Initiatives.

The Petroleum Registry of Alberta DOE/EUB Update

The Petroleum Registry of Alberta DOE Provisional Assessment Trends ($MM)

The Petroleum Registry of Alberta DOE Provisional Assessments – (con’t) This Month Compared to Last

The Petroleum Registry of Alberta EUB Non-compliance Errors by Production Month

The Petroleum Registry of Alberta EUB Non-compliance Errors By Type Missing Well Metering diff Imbalance Missing Facility 'P' Pending Other Total

The Petroleum Registry of Alberta EUB Non-Compliance Appeals # Operators Invoiced # Chargeable Errors $ invoiced$55,700$29,300$57,800$50,000 # Appeals # Granted Net $$16,000$19,300$40,900

The Petroleum Registry of Alberta EUB Non-Compliance Escalation # Operators Invoiced # Chargeable Errors # Operators – Warning # Errors # Operators Level # Errors324325

The Petroleum Registry of Alberta Industry Registry Team Agenda Items Partner Reporting Update BC Update Did You Know?

The Petroleum Registry of Alberta Partner Reporting Update Background Partner Reporting through the Registry (volumetrics, allocations, infrastructure) was part of original benefit case for Industry Base functionality in place at Registry go-live (SAF/OAF allocations can be made at any level) Additional functionality part of 2003 Industry Enhancement Project: –“ROYALTY” activity re. Reporting of operator estimated oil crown royalty –“Distribution List” re. Security Blanket restrictions –“Save Report Request Parameters” –“Server-to-Server” capability

The Petroleum Registry of Alberta Partner Reporting Update Background (con’t) In 2004 IBC recommended: a. Additional Registry Changes- 1.Activating Registry Ensure Complete “sweep” to be run 2 days ahead of “cheque exchange” 2.Development of new “Working Interest Owner Report” 3.Clarify allocation submission rules for NGLs b. Implementation of Registry Partner Reporting for June 2004 production month (July 2004 reporting)

The Petroleum Registry of Alberta Partner Reporting Update Background (con’t) Additional work of IBC Partner Reporting Subcommittee: Review all reports to identify any key missing data elements Identify and recommend changes to EUB deadlines Develop suggested PA workflow calendar (still being reviewed by IBC): -Encourage data to be input to the Registry early so it is available when needed by other parties (e.g. partner reporting data for “Cheque Exchange”)

The Petroleum Registry of Alberta Partner Reporting Update Additional Registry Changes 1. Ensure Complete Sweep (mid-July 04) This is the same process as is currently run when requested by a BA in the Registry It will now also be run automatically 2 days in advance of “cheque exchange” for all BA’s While the “sweep” will be run against royalty triggers only, the objective is to encourage operators to have all allocations in place for partners to view in the Registry by “Cheque Exchange”

The Petroleum Registry of Alberta Partner Reporting Update Additional Registry Changes 2. Working Interest Owner Report (mid-July 04) Available for operated and non-operated facilities New report will combine data previously available on the Volumetric Facility Activity and Owner Allocation reports Will display for each facility/product requested: –gross volumetric data for the facility –net volumetric data by stream and owner Allocations must be submitted by the operator in order for the net stream/owner information to be available Allocations can be submitted by the operator for every product and activity at a facility

The Petroleum Registry of Alberta Partner Reporting Update Additional Registry Changes 3. Allocation submission rules for NGL products (July 1, 2004) Volumetric reporting allows for the use of NGL’s at a “group” or “component” level (e.g. C4-MX is the group; IC4-MX and NC4-MX are components) Allocations normally must match exactly the volumetric record, including the product Since pipelines generally report at the component level, many producers find that their dispositions are at the component level, but their inventory is at the group level

The Petroleum Registry of Alberta Partner Reporting Update Additional Registry Changes 3. Allocation submission rules for NGL products (con’t) After review of various options the Registry rules will be: a)If an allocation is filed at the product "group" level (e.g. C4-MX), the allocation will be applied to the sum of all the components reported in the group (e.g. the sum of all C4-MX, IC4-MX, and NC4-MX) b)If an allocation is filed at the component level (e.g. IC4- MX), the allocation will only be applied to volumes for that specific component. This is unchanged from previous Registry practice

The Petroleum Registry of Alberta Partner Reporting Update Additional Registry Changes 3. Allocation submission rules for NGL products (con’t) c)In the event of a cascade, the response to that cascade must be at the same level of reporting as the facility creating the cascade. Example: If a GP allocates C4-MX to a BT, the BT's cascade response must be reported as C4-MX, not IC4- MX and NC4-MX

The Petroleum Registry of Alberta Partner Reporting Update “Readiness Tools” Change Leader Letter –Includes sample Partner Notification Letter Training System Updated (mid-June) –WIO report will be added to Training –Managing Reports and Queries modules will be included in Free Starter Package (available to non-operators) Multi-purpose TIP: “Retrieving Information from the Registry” –Useful reference for non-operators and infrequent Registry Users Additional TIPs –Will be issued re. Ensure Complete Sweep and NGL changes

The Petroleum Registry of Alberta BC Update Registry Steering Committee and CAPP (as sponsor) have conceptually endorsed inclusion of BC reporting in the Registry. Work has begun to identify changes required to Registry, BC and Industry systems, and to develop a Opportunity Assessment/Evaluation Process (+/- 50%) for this change. A Committee and Working Group structure is in place to guide the Opportunity Assessment/Evaluation development process.

The Petroleum Registry of Alberta BC Update (con’t) Producer/Pipeline Direction Committee BC Government Direction Committee Plant Operator Direction Committee Joint Working Group

The Petroleum Registry of Alberta BC Update Joint Working Group Roles Identify/ document changes required in stakeholder systems and processes (MPR, OGC, MEM, Producers, Pipelines, Plant and other Facility Operators, Registry) (June 20, 2004) Communicate and confirm changes with Direction Committees Request/compile stakeholder input re. Costs and Benefits (July 31, 2004) Compile Opportunity Assessment/Evaluation Process: communicate to stakeholders, RAC, RSC (Q3 04)

The Petroleum Registry of Alberta BC Update Looking Ahead Actual BC integration with Registry dependent on a number of factors including: –Outcomes of Opportunity Assessment/Evaluation Process –Commercial negotiations –Continued stakeholder support –RAC recommendations Registry Steering Committee has ultimate authority for all changes to the Registry Timing of any such change is yet to be determined

The Petroleum Registry of Alberta DID YOU KNOW?

The Petroleum Registry of Alberta 1.Three key diagnostic reports can now be requested in.csv format Based on user requests to make the data more manageable the option to choose a.csv format has been included for the following reports: SAF/OAF Ensure Complete ( May 25 th, 2004) EUB Non Compliance (Jan 9 th, 2004) Allocation Variance (Jan 9 th, 2004) Please refer to the Registry TIPS section for further information.

The Petroleum Registry of Alberta 2. The Registry error warning reports now run during the day. The order of processing data at the Registry changed March 17 th for monthly batch submissions, the EUB Non-Compliance and the SAF/OAF Ensure Complete report requests The warning report requests are now processed along with the monthly batch submissions on a first-in first-out basis during the day Please refer to the Registry TIPS section for more information

The Petroleum Registry of Alberta 3. A number Registry training modules have been rewritten or updated. The Registry Overview Modules have been completely rewritten and are now available These modules can be used as an orientation for new Registry users It may also be of interest to those who wish to learn about the Registry and the types of data and processes it contains

The Petroleum Registry of Alberta 3. A number Registry training modules have been rewritten or updated. (con’t) Manage Volumetric Submissions “part b” has been updated to reflect the PL/MS/TM reporting changes and will be available the week of June 7, 2004 This module should be reviewed by those who report volumes associated with Meter Stations, Pipelines and Terminals Request Reports and Queries “part b” will be updated shortly to reflect the new W.I.O. report Further information about which modules have been updated can be found on the Registry website under PSS/Training - Summary of Module Changes

The Petroleum Registry of Alberta 4. The impact the PL/MS/TM code change has on CSOs and receiving facility operators Common Stream Operator (CSO) Gas Reporting Impacts No impact to CSOs regarding 631(637) Field Receipt Meter Stations same rules apply With the auto populate flow through flag set to Yes, no CSO reporting is required. The PL/MS operator will report and the volume, energy and ISC’s disposed to the PL and the Registry will auto populate the additional volume, energy and ISC’s receipts and disposition as required

The Petroleum Registry of Alberta 4. The impact the PL/MS/TM code change has on CSOs and receiving facility operators (con’t) No impact to CSOs regarding 631(637) Field Receipt Meter Stations same rules apply ( con’t) With the auto populate flow through flag set to No, the CSO needs to report the receipts from the various field facilities and balance to the volume, energy and ISC’s reported by the pipeline. The Registry will create the corresponding disposition at the field facility

The Petroleum Registry of Alberta 4. The impact of the MS/TM PL/ code change has on CSO and receiving facility operators (con’t) CSO Impacts regarding 632(638) or 633(639) Interconnect Meter Stations A production/field facility operator will no longer be able to report a receipt from the MS With auto populate set to Yes, no CSO reporting is required. The PL/MS operator will report and the volume, energy and ISC’s received from the PL and the Registry will auto populate the additional volume, energy and ISC’s receipt and dispositions as required

The Petroleum Registry of Alberta 4. The impact of the MS/TM PL/ code change has on CSO and receiving facility operators (con’t) CSO Impacts regarding 632(638) or 633(639) Interconnect Meter Stations Cont With the auto populate flow through flag set to No, the CSO needs to report the meter station dispositions to the various field facilities and balance to the volume, energy and ISC’s reported by the pipeline. The Registry will create the corresponding receipt at the field facilities

The Petroleum Registry of Alberta 4. The impact of the MS/TM PL/ code change has on CSO and receiving facility operators (con’t) Receiving Facility operator Oil/Liquid reporting impacts A production/field facility operator will no longer be able to report a receipt from a Pipeline or Terminal. The terminal/pipeline operator will report a disposition to the the production/field facility and the Registry will create the corresponding receipt at the field facility.

The Petroleum Registry of Alberta 4. The impact of the MS/TM PL/ code change has on CSO and receiving facility operators (con’t) Receiving Facility operator Oil/Liquid reporting impacts Cont If the product movement is between two terminals then the receiving terminal reports and the Registry will create the corresponding disposition at the other terminal If the product movement is between a terminal and a pipeline, the pipeline will be in control and report the receipt or disposition and the Registry will create the corresponding disposition or receipt at the terminal

The Petroleum Registry of Alberta 4. The impact of the MS/TM PL/ code change has on CSO and receiving facility operators (con’t) Receiving Facility operator Oil/Liquid reporting impacts Cont If the product movement is between two pipelines then the receiving pipeline reports and the Registry will create the corresponding disposition at the other pipeline. Please refer to the Registry TIPS section or presentation on Registry web site for more information

The Petroleum Registry of Alberta 5. The EUB Deadlines for the rest of At Industry’s request the EUB has agreed to adjust the volumetric filing deadline for various months to the end of the year. The deadlines now are: June 21 st July 20 th August 19 th September 20 th October 20 th November 19 th December 20 th Hopefully this will spread the workload out over more days and reduce the high peak loads Similar date changes were made for the first half of the year Facility operators should submit data as soon as it is available and not simply meet the new later deadlines

The Petroleum Registry of Alberta 5. The EUB Deadlines for the rest of (con’t) Changing the EUB Volumetric filing deadline has impacts to the following Registry processes: EUB Non compliance Invoice EUB Non compliance Appeal deadline DOE Oil Crown Royalty Statements APMC Reconciliation Reports Please refer to the Registry website Bulletin Board area for the updated calendars.

The Petroleum Registry of Alberta 6. Minimum Report Requirements IBC Partner Reporting Sub-Committee met in response to failed Registry report requests In May 2004, the sub-committee reached consensus for minimum Registry report requirements, including parameters Promote of new Registry servers has meant minimum requirements have been consistently exceeded Report requirements will be revisited in Fall of 2004 after evaluation of server performance and industry practices (i.e. Partner Reporting)

The Petroleum Registry of Alberta 6. Minimum Report Requirements (con’t) In the meantime… –Keep report requests at reasonable levels –Only request information that is needed –Double check your selections before you submit Examples of onerous requests –Volumetric Reports for the province of Alberta –Volumetric Reports for a single BA -all products, all facilities - for October 2002 to current –Allocation Reports from October 2002 to current

The Petroleum Registry of Alberta QUESTIONS