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

The Petroleum Registry of Alberta Agenda 1.Introductions 2.Registry Update -Hours of Operation -Pipeline/Meter Stations Enhancement Initiative -Registry Activity levels -Provisional Assessments 3.EUB Non-compliance Appeals -Overview 4.IRT Update -Current IRT Focus Items -Did You know? 5.Question & Answer

The Petroleum Registry of Alberta Registry Update

The Petroleum Registry of Alberta Hours of Operation 7:00 a.m. open to 6:30 a.m. open (completed) 8 p.m. close to 9:00 p.m. close (*April 1, 2004, for a three month trial period.) Saturdays: 6:30 am – 9:00 pm (*April 1, 2004, for a three month trial period.) First Monday of each month: Registry closes at 6:00 p.m. for system maintenance Generally first Wednesday of the month: Registry closes at noon for scheduled release implementation. *aligned with the project plan for the Pipeline/Meter Stations enhancement initiative.

The Petroleum Registry of Alberta Pipeline/Meter Stations Enhancement Initiative (Project Plan Update)

The Petroleum Registry of Alberta Registry Activity Levels The number of page hits for January 04 was 2.8 million, up from 2.6 million the previous month. Service Desk, total calls to date: 37,422

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

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

The Petroleum Registry of Alberta EUB Non-Compliance

The Petroleum Registry of Alberta Chargeable Errors Production Month

The Petroleum Registry of Alberta Total Chargeable Errors

The Petroleum Registry of Alberta Total Chargeable Errors By Type Error 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$191,000$90,400$89,700$55,700 # Appeals # Granted Net $$113,200$56,100$61,700

The Petroleum Registry of Alberta EUB Non-Compliance Appeals Cause # 1 Registry Issue Cause # 2 Late Filing 224 Cause # 3 Wrong Filing Cause # 4 Other Total Appeals764551

The Petroleum Registry of Alberta Not Granted Reason for Denial –Missing or Wrong volume – same operator –Misuse of AB MC –Not responding to an EUB query in a timely manner

The Petroleum Registry of Alberta Appeal Timeline Industry has 15 calendar days to submit an Appeal –January production month – March 11 th –Late appeals will not be accepted EUB will notify of decision within 10 calendar days from receipt of appeal –Decisions can be delayed if EUB queries are not responded to timely

The Petroleum Registry of Alberta Industry Registry Team Update

The Petroleum Registry of Alberta Current IRT Focus Items 1.Pipeline/Meter Station/Terminal Reporting Changes 2.BC Reporting in the Registry 3.Partner Reporting 4.Preliminary Benefits Leverage List

The Petroleum Registry of Alberta 1. PL/MS/TM Reporting Changes Background TCPL is required to report many “paper” pipelines in order for the Registry to accommodate the large number of meter stations and “auto” population of activities. ATCO also has large files with many meter stations and “auto” population of activities --- requires processing after Registry hours. Volumetric Changes to a single meter station require the entire PL to be resubmitted – results in large amount of processing in order to change one number. Liquid Terminal and Pipeline operators are unable to report dispositions when they are actually in control of the measurement of the product.

The Petroleum Registry of Alberta 1. PL/MS/TM Reporting Changes ( con’t ) For Gas Pipelines and Meter Stations Reporting done at the MS level versus the PL –Transactions will begin at the meter station (MS) and the Registry will autopopulate the Pipeline activity. –CSO’s are restricted at the MS to the specific activities (i.e. at a 631 type MS, the CSO can only report receipts). –ISC’s will be required at the meter station but the Registry will not autopopulate them where they are not needed (no ISC’s at the PL).

The Petroleum Registry of Alberta 1. PL/MS/TM Reporting Changes ( con’t ) For Gas Pipelines and Meter Stations Reporting done at the MS level versus the PL –Downstream (Field) facilities will no longer report REC from meter stations –The CSO will report the MS disposing to the Downstream facility I.e. BT, IF, GP, GS etc.

The Petroleum Registry of Alberta 1. PL/MS/TM Reporting Changes ( con’t ) For Oil & NGL terminals (TM): The terminal operator is in control of reporting the majority of volumes received at and disposed from the terminal. When two terminals are involved - the receiving terminal is in control and will report the received volume. When a pipeline is involved - the pipeline is in control of reporting both receipts from and dispositions to the terminal.

The Petroleum Registry of Alberta 1. PL/MS/TM Reporting Changes ( con’t ) For Oil & NGL pipelines (PL): The pipeline operator is in control of reporting both receipts into and dispositions from the pipeline unless there is another pipeline involved. When two pipelines are involved - the receiving pipeline is in control and will report the received volume. Please note: None of the above impacts reporting when the receiving or delivering facility/entity is not reporting in the Registry.

The Petroleum Registry of Alberta 1. PL/MS/TM Reporting Changes ( con’t ) TaskDate Required Complete Validation of MS Subtypes (MS operators) February 28 th Facility operators to clean up EUB Non Compliance Items March 31st Registry Development CompleteMarch 31 st Registry Acceptance TestingApril 1 – 30 th Pipeline Companies test batch file submission April 15 – May 15 th Registry ConversionMay 20 – 25th Go Live with new processMay 26th Tentative Implementation Schedule

The Petroleum Registry of Alberta 1. PL/MS/TM Reporting Changes ( con’t ) For more detailed information please refer to the following presentations available on the Registry website: - under Bulletin Board - What’s New 1.PL/MS changes Gas Meeting 2.PL/TM changes Oil Meeting The IRT team will continue to inform Industry regarding this item over the next months.

The Petroleum Registry of Alberta 2. BC Reporting in the Registry BC is interested in participating in the Registry BC participation has been conceptually endorsed by Industry and the Registry Steering Committee. Initial meetings have been held in Calgary & Victoria Over the next several months meetings will be held with Various BC government departments Duke Energy BC producers The stakeholders are working together to develop a business case, which is required before their participation can be approved.

The Petroleum Registry of Alberta 3. Partner Reporting Subcommittee of IBC formed to: –Identify and resolve any impediments to the implementation of full partner reporting in the Registry –Review monthly deadlines and Industry practices Identify bottlenecks in the monthly processes Recommend “partner reporting” deadlines in order to have information available from the Registry for all stakeholders (upstream operators, owners, etc) when it is needed –Validate Registry reports – do they provide all information necessary for partner reporting –Recommend partner reporting implementation month

The Petroleum Registry of Alberta 3. Partner Reporting (con’t) Deadlines for reporting to the Registry –Subcommittee is in the process of reviewing the monthly work flows and recommending appropriate changes to the monthly reporting deadlines, where applicable. –Focusing on having all data available in the Registry when it is needed by stakeholders – eliminate phone calls. –Team agreed that allocations could be filed at the same time as volumetrics – the data is available. Operators should not wait until the DOE deadline. –Participants are validating impact of deadlines within their own companies – e.g. Does the Marketing dept rely on data from the Registry and require it by a certain time?

The Petroleum Registry of Alberta 3. Partner Reporting (con’t) Registry Reports –Reviewed reports to identify minimum reasonable requirements All operated for one month for volumetrics All allocations for one month where BA is named as an owner –Looking at feasibility of adding contact information to monthly reports –Identified one new report – Working Interest Owner Report

The Petroleum Registry of Alberta 3. Partner Reporting (con’t) A few unresolved items being addressed by the team –Inventory exchange/swaps –Allocation of NGL’s – what level of detail –Storing zeros for streams/owners in allocations –Allocation downloads – need an SAFOAF volume download

The Petroleum Registry of Alberta 4. Preliminary Benefits – Leverage List 1. Remaining High and Medium Priority Issues Under Review by the IBC/IRT a. Late/Last Minute Submissions b. Well Infrastructure Issues c. Registry Pipeline Split Implementation 2. Performance issues 3. Vendor Issues 4. Training Issues 5. Resolved Items

The Petroleum Registry of Alberta 4. Preliminary Benefits – Leverage List (con’t) 1a. Late/Last Minute Submissions IRT has created template letters (Volumetric and Allocation submissions) that can be sent to operators who file at the last minute. cc. Industry Registry Manager. Available through the Service desk. Discussions determined that many companies do not submit data early due to: (i)System constraints (facility must balance first) (ii)Production Accountant work process issues such as a desire to complete gas splits first (iii)PA reluctance to submit multiple batches for a single facility (server-to-server would help)

The Petroleum Registry of Alberta 4. Preliminary Benefits – Leverage List (con’t) 1a. Late/Last Minute Submissions (Continued) The Registry calendar has been adjusted up to June 2004 to allow more time between the gas pipeline split deadline and the EUB volumetric deadline. Updated EUB deadlines are: March 19 th April 20 th May 20 th June 21 st

The Petroleum Registry of Alberta 4. Preliminary Benefits – Leverage List (con’t) 1a. Late/Last Minute Submissions (Continued) The intent of this extension is provide additional time for you to submit ahead of the deadline It is not intended for all users to submit data later and just move the problem from the 18 th to the new deadline The Registry will be monitoring users’ behaviour over the next few months to evaluate how people are using the additional time.

The Petroleum Registry of Alberta 4. Preliminary Benefits – Leverage List (con’t) 1b. Well Infrastructure Issues There are a number of Well Infrastructure issues that currently have published workarounds. New Pool code for Commingling Wells Packer/Bridge plug issues EUB is reviewing the known issues and will potentially be making changes to the Registry. Industry is asked to provide information regarding any other Well Infrastructure issues to the Registry Service desk. The IRT will ensure the EUB includes any new issues in its review.

The Petroleum Registry of Alberta 4. Preliminary Benefits – Leverage List (con’t) 1c. Registry Pipeline Split Implementation Currently IRT focus is Implementation of Partner Reporting BC reporting Leverage List Further P/L split discussions are planned with pipelines, system vendors and Industry for later in 2004

The Petroleum Registry of Alberta 4. Preliminary Benefits – Leverage List (con’t) 2. Performance Issues Few remaining (peak day and “one-off” issues) Performance tuning continues 3. Vendor Issues Many meetings have been held with the vendors and their user groups Most of the original issues raised have been resolved with new vendor releases. There are 4 remaining items. Discussions are ongoing.

The Petroleum Registry of Alberta 4. Preliminary Benefits – Leverage List (con’t) 4. Training Issues A number of items remain Currently being reviewed and addressed by IRT & IBC 5. Resolved Items Users are asked to: Review the resolved items Confirm the resolution provided is appropriate Inform the IRT if you don’t agree with the resolution documented Issues with open VI’s are highlighted and tracked

The Petroleum Registry of Alberta DID YOU KNOW?

The Petroleum Registry of Alberta 1. Users can open multiple sessions of the Registry at the same time Log onto the Registry as normal and then log on again. Uses: –Can validate well statuses while doing volumetrics –Can lookup facility information (status, operator) when querying volumetric or allocations –Can query multiple facilities/months at the same time in order to compare data or validate the volumetrics/allocations.

The Petroleum Registry of Alberta 2. Sizing for Screen Prints When doing screen prints you need to adjust your page setup so that items on the right hand side of the screen print properly. There are two different “Page setup” changes that can be used: Change the orientation to landscape or Change all the margins to 0.25 Either one of these changes will ensure all data is printed.

The Petroleum Registry of Alberta 3. WIP Cleanup When Querying data users are Saving to WIP this is leaving many items in WIP that require cleanup. Users should submit the data that is saved in WIP or Use the WIP Maintenance screen can be used to delete unnecessary items from WIP.

The Petroleum Registry of Alberta 4. First In First Out (FIFO) Daytime Report Processing Since the Registry went live day time batch processing of files has been in the following sequence: 1.Monthly submission files 2.Warning Reports (EUB Non Compliance & Registry SAF/OAF Ensure Complete) This meant that all submission files must process before creating any of the warning reports. Thus on a deadline day often the reports were not available until the end of the day.

The Petroleum Registry of Alberta 4. First In First Out (FIFO) Daytime Report Processing (Continued) At Industry’s request this will change (approx. March 10 th ) to be: First in First out for the monthly batch submissions and the warning reports. This means that the warning reports will be available earlier through out the day.

The Petroleum Registry of Alberta 5. The Contact Button is Available March 4th Available on Query screens for Monthly processes (volumetrics, allocations, pipeline splits). Displays information of user that made the submission being queried. –BA ID and Name –Contact Person Name and Phone number –Contact Person Displays Audit information also –Created Date and Last Update Date and info

The Petroleum Registry of Alberta 6. PURREC/PURDISP PURREC is reported for final sales within the Royalty Network, generally for lease fuel purposes E.g. Gas sold from a Gas Plant to an Oil Battery for fuel. PURREC generates a auto created PURDISP, which is a Royalty Trigger and requires a SAFOAF A new Tip has been published under Monthly Reporting Volumetrics Proper Use of PURREC and PURDISP

The Petroleum Registry of Alberta 7. The Proper Use of ALL on SAFOAF Submissions Concern for Upstream Operators (cascades) –Difficult to determine where volumes were delivered to –Creates problems in cases where the downstream operator “flips” from ALL to Specific from month to month When is it appropriate to use ALL? –When facility operators do not have the information available to report the details of each disposition to a stream/owner level Many midstream operations do not track where the product came from – only who owns it. –Some operators use ALL when they have many dispositions, with the same wells/owners E.g. many purchase dispositions of gas for fuel, all supplied by the plant owners

The Petroleum Registry of Alberta 7. The Proper Use of ALL on SAFOAF Submissions (con’t) Facilities Using ALL –Query run for production month –Identified 32 facilities over 13 operators using ALL in the from/to on a “first level” allocation that creates a cascade –18 of the 32 facilities only have one disposition and should be using a specific from/to – s sent to each operator advising them to validate their use of ALL –IRT will follow-up with each operator –Operators will communicate changes to affected upstream parties prior to making the change

The Petroleum Registry of Alberta 8. Distribution Lists are in Production BA’s named on a Distribution List are entitled to see the details of the DISP’s for the reporting facility/product/destination named Distribution Lists are automatically created when allocations of DISP’s are filed –Exception is where ALL is used in the from/to Distribution Lists can also be input –The ‘manual’ list automatically rolls forward to subsequent months. Registry is addressing problem where some lists did not get created –Registry will create any lists that were not done based on SAFOAF filings from December 3, 2003

The Petroleum Registry of Alberta 8. Distribution Lists are in Production (con’t) How to Utilize the Distribution List If you query Volumetrics for a non-operated facility that you delivered volumes to, you can see the details of where that facility’s dispositions went. –Can see the facility id and volume for each disposition where you were named on the distribution list When responding to a Cascade that has ALL in the from/to field, upstream operator can view the disposition details –Need to contact the downstream operator if you are not named on the distribution list

The Petroleum Registry of Alberta Users can save the report selection parameters to their desktop Each month, load the saved parameter file to the report request screen, change the production month information, and submit. –Can also update requested data – add/remove facilities, operators, owners, etc. Most useful for monthly requests –EUB non-compliance requests –Ensure Complete requests –Monthly Volumetric Activity Report –OAF Report –Variance Report 9. The “Save Report Parameters” makes report requests easier

The Petroleum Registry of Alberta 10. The Allocation Variance Report has changed Now available in both CSV or PDF versions Users can request the Summary or Details –Summary – shows the total volume/energy submitted and the total volume/energy calculated for the selected allocation(s) –Details – shows the submitted and calculated volume/energy for each stream/owner on the selected allocation(s) Useful tool in identifying problems –Missing wells/owners –Possible Crown royalty impacts

The Petroleum Registry of Alberta 11. Liquid Injected and Recovered as Part of the Gas Stream Liquid Volume is shown as a REC at the upstream facility Upstream facility must then report the gas equivalent of the liquid received in order to balance –GAS – REC – ABGE The gas equivalent of the liquid is then recovered as part of the gas stream –Royalty Trigger implications –Contact DOE Gas Royalty Help Desk for a royalty paid stream id to use on the SAFOAF

The Petroleum Registry of Alberta 11. Liquid Injected and Recovered as Part of the Gas Stream– Example 1

The Petroleum Registry of Alberta 11. Liquid Injected and Recovered as Part of the Gas Stream– Example 1 (con’t)

The Petroleum Registry of Alberta 11. Liquid Injected and Recovered as Part of the Gas Stream– Example 2

The Petroleum Registry of Alberta 11. Liquid Injected and Recovered as Part of the Gas Stream– Example 2 (con’t)

The Petroleum Registry of Alberta 11. Liquid injected & recovered as part of the Gas Stream – Example 3

The Petroleum Registry of Alberta 11. Liquid injected & recovered as part of the Gas Stream – Example 3 (con’t)

The Petroleum Registry of Alberta 11. Liquid injected & recovered as part of the Gas Stream – Example 3 (con’t)