1. Special Registry/Industry Q&A Session ALLOWABLE COSTS SUBMISSIONS
The Petroleum Registry of Alberta Energizing the flow of information
Special Registry/Industry Q&A Session
ALLOWABLE COSTS SUBMISSIONS
February 9, 2010

2. AGENDA Introduction/Opening Comments Background
Allowable Costs What’s Changed?
AC2 – Capital & Operating Cost Claims
AC3 – Allowable Costs Reallocations
AC4 – Not Applicable
AC5 – Custom Processing Fees Paid
Step by Step Allowable Cost Processes
AC2
AC3
AC4
AC5
Request Allowable Costs Reports
Sunday Openings for Allowable Cost Season
Training & Other Sources of AC Information
Questions

3. Background
These changes reflect the second and final phase of the previously announced Alberta Royalty Framework changes for Allowable Costs (the first phase incorporated the AC1 adjustments in early 2009).
The Registry changes for Phase II (AC2-5) went live effective February 4th, 2010.
The Department of Energy implementation is scheduled for the weekend of February 13th, 2010.
Submissions to PRA will be accepted and processed, however will not be ‘confirmed’ until after February 13th.

4. Allowable Costs 2009 – What’s Changed?

5. What’s Changed – AC2? For Production Year 2009 and Onward:
AC2 is used to report both capital and operating costs for the year.
All FCC’s are required to report operating costs using the AC2.
Operating & capital costs must be allocated to working interest owners even if the costs are zero for the year.
Capital and operating costs can be allocated to other delivering (ERCB) facilities.
Custom Processing Adjustment Factor (CPAF) can be reported for capital & operating costs.

6. AC2 2009 screen has two views:
Capital Cost
& Operating Cost
The Capital Cost view is the same as pre 2009 AC2 data with the addition of Allocations to Other Delivery Facilities.
These allocations to other delivery facilities are for situations when some of the AC $ are applicable to other ERCB facilities within the same royalty network.

7. The Operating Cost view contains data previously submitted on the AC4
The Operating Cost view contains data previously submitted on the AC4. (AC4 is not valid for 2009 & forward)
For 2009 & forward all FCC’s must submit Operating Costs.
Allocations to WIO, Other Delivery Facilities & CPAF sections are new to Operating Cost reporting

8. What’s Changed – AC3? For Production Year 2009 and Onward:
AC3 used to reallocate capital and operating costs to other BAs (royalty clients).
AC3 used to reallocate capital and operating costs to other ERCB facilities.
Custom Processing Volumes cannot be reallocated.

9. The 2009 AC3 reallocates both the capital & operating $ from the AC2
You can allocate to more facilities or to another BA (WIO)
CPAF volumes cannot be reallocated effective 2009.

10. What’s Changed – AC4? For Production Year 2009 and Onward:
The AC4 is not valid.
All operating costs are reported using the AC2 starting 2009 and forward.

11. What Has Changed – AC5? For Production Year 2009 and Onward:
AC5 has only one view available called Custom Processing Fees Paid.
AC5 no longer includes Energy Adjusted Gas Equivalent Volume.
AC5 no longer requires the type of custom processing (excess capacity, compressing, gathering, and processing) to be reported.
AC5 no longer requires the exception type.

12. The 2009 AC5 is simplified from previous years’ submissions.
There is only one type of cost allowed:
Custom Processing Fees Paid.

13. Step by Step Allowable Costs Screens

14. AC2 – Allowable Capital & Operating Costs

15. Clicking on Edit AC2 on the Registry menu opens up the Edit Capital Costs - AC2 screen.
Enter the FCC ID and year or click the lookup

16. Using the FCC lookup select the FCC you want to Edit & Click OK

17. The selected FCC data is displayed
Click Go.

18. Screen will open to Capital Cost view asking if you want to copy the data from the previous year.
Click OK
Due to the size of this screen/form it will be shown in separate pieces for the rest of this presentation.

19. The first section includes the Header Information.

20. Next is the Capital Cost Allowance Calculation section
Next is the Capital Cost Allowance Calculation section. In this case the closing costs from last year’s data has been copied into the Opening costs for Cumulative Allowable Capital and Allowable Capital Costs.
This section includes inputs fields for Land & Average Spare Parts Inventory

21. We now have the Capital Additions/Adjustments and Allocation to Working Interest Owners and Allocations to Other Delivery Facilities sections.
Allocations to WIO do not have to be the same on the Capital & Operating view but they both must add to 100%.
Allocations to Other Delivery Facilities are new. This section must be blank or add to 100%.

22. The Contact Name and Phone Number have been displayed as the logged
The final sections of the Capital Costs View include the Custom Processing Adjustment Factor Calculation for Capital Costs and Contact Information.
The Contact Name and Phone Number have been displayed as the logged
In user, but are editable. The Date Prepared is the current date.
Custom Users do not have to be the same in the Capital & Operating View however the Total Facility Throughput must be.

23. Once you have input all the applicable data on the Capital View
Click Validate to see if you have any errors

24. Here are a couple of new messages not applicable prior to 2009.
Blue messages are warnings and submissions can proceed.
Allocations to other facilities may be rejected by DOE, in which case the % rejected will be allocated to ERCB facility the FCC is linked to.
Red items are errors that must be corrected before submitting.
Note you cannot submit the AC2 until all Red errors are
cleared on the Capital & Operating Views

25. Clicking on the beside the View, allows you to select the Operating Cost View. This view will also be shown in separate pieces for this presentation.
The first section includes the Header Information.

26. Next is the Operating Cost Allowance Calculation and Other Allowables sections. When you change the view to Operating Costs, you will receive a number of error messages as the information has not been entered.
You must input a number (which can be zero) in the following fields:
Standard Allowable Operating Costs
Co-Generation Utilities
Green House Emission Compliance Costs

27. The next sections are Operating Cost Allowance Allocations to Working Interest Owners and Operating Cost Allowance Allocations to Other Delivery Facilities.
You must input Allocations to Working Interest Owners that add to 100% when combined with the Operating Cost CPAF%.
Allocations to Other Delivery Facilities are for situations when some of the AC $ are applicable to other ERCB facilities within the same royalty network. These allocations must be blank or add to 100%

28. Lastly, The Custom Processing Adjustment Factor Calculation for Operating Costs and Contact Information.
You can enter different CPAF information for Operating Costs that is different than the Capital CPAF data but the Total Facility Cost Centre Throughput for Operating & Capital must be the same.
Once you have finished inputting your data on the Operating View Click Validate

29. Blue messages are warnings and submissions can proceed.
Allocations to other facilities may be rejected by DOE, in which case the % rejected will be allocated to ERCB facility the FCC is linked to.
Red items are errors that must be corrected before submitting.
Note you cannot submit the AC2 until all Red errors are
cleared on the Capital & Operating Views

30. Once you have corrected all your errors on both the Capital & Operating Views, click Submit. You will then see the Successful Submission message.
Remember all submissions are unconfirmed until they have been validated and returned as Approved by the DOE.

31. Once the DOE has approved your AC2 submission you will receive an notification from the Registry.
The DOE may reject or partially reject your AC2 submission. Details regarding rejections can be found in Ministry Invoices and Statements

32. Clicking on Query AC2 on the Registry menu opens up the Query Capital Costs AC2 screen.
Enter the FCC ID and year or click the lookup then Click Go

33. The AC2 query opens on the Capital Cost View
Only the FCC operator or WIO’s named on the AC2 can query the AC2 data.
Only Confirmed data can be queried.
To see the Operating Cost View data used the dropdown to change the view
If you are the operator of the FCC and you have edit authority you can use the Edit button to change from Query to Edit.

34. Here is the AC2 Query Operating View
Only the FCC operator or WIO’s named on the AC2 can query the AC2 data.
To see the Capital Cost View data used the dropdown to change the view to Capital Cost
If you are the operator of the FCC and you have edit authority you can use the Edit button to change from Query to Edit.

35. AC3 – Allowable Costs Reallocations

36. Clicking on Edit AC3 on the Registry menu opens up the Edit Allowable Costs Reallocations – AC3 screen.
Enter the FCC id and year or click the lookup

37. The first section includes the Header Information.

38. Input the applicable data.
You can reallocate both Capital & Operating Allowances from the AC2 to other Delivery Facilities or to other BAs.
Always Validate before Submitting your data.

39. Once you have corrected any errors Click Submit you will then see the Successful Submission message.
Remember all submissions are unconfirmed until they have been validated and returned as Approved by the DOE.

40. Once the DOE has approved your AC3 submission you will receive an notification from the Registry.
The DOE may reject or partially reject your AC3 submission. Details regarding rejections can be found in Ministry Invoices and Statements

41. Clicking on Query AC3 on the Registry menu opens up the Query Allowable Costs Reallocations – AC3 screen.
Enter the year,
FCC ID, and
From BA ID or click the lookups

42. The AC3 Query data is available to those BA’s named on the submission
(the From BA/submitter and the To BA).
Only Confirmed AC3 data can be queried.

43. AC4 –Operating Costs

44. AC4 is not valid for 2009 and onwards.
When you Click on Edit AC4 on the Menu it will open the Edit Operating Costs – AC4 page however
When the year is 2009 and you click Go you get an error message
“AC4 is not valid for year 2009 and forward use AC2 to report Operating Expenses.”

45. AC4 is not valid for 2009 and onwards.
When you Click on Query AC4 on the Menu it will open the Query Operating Costs – AC4 page however
When the year is 2009 and you click Go you get an error message
“AC4 is not valid for year 2009 and forward use AC2 to report Operating Expenses.”

46. AC5 – Custom Processing Fees Paid

47. Clicking on Edit AC5 on the Registry menu opens up the Edit Custom Processing Fees Paid - AC5 screen.
Enter or confirm the production year and
Click Go

48. Based on the year selected the appropriate view(s) will be available.
For 2009 and onwards only the Custom Processing Fees Paid View is valid

49. Input the applicable data
Click Validate to see if you have any errors
Then Click Submit

50. Once you have corrected any errors Click Submit you will then see the Successful Submission message.
Remember all submissions are unconfirmed until they have been validated and returned as Approved by the DOE.

51. Once the DOE has approved your AC5 submission you will receive an notification from the Registry.
The DOE may reject or partially reject your AC5 submission. Details regarding rejections can be found in Ministry Invoices and Statements

52. Clicking on Query AC5 on the Registry menu opens up the Query Custom Processing Fees Paid – AC5 screen.
Click Go

53. The AC5 query screen displays confirmed data only

54. Request Allowable Cost Reports

55. Clicking on Submit Report Request on the Registry menu opens up the Submit Report Request page
Using the dropdown list you can select the Allowable Cost Report you want.

56. AC2 – FCC Capital and Operating Costs Report 
For production years 2009 and onward has new selection options including:
Capital Summary report
Operating Summary report
Detail report (capital & operating costs)
The report is available in:
pdf, csv & xml formats

57. AC3 – Allowable Costs Reallocation Report
For production years 2009 and onward there are new selection options including:
Capital Cost report
Operating Cost report 
The report is available in
pdf, csv & xml formats

58. AC4 – Operating Cost Claim Report 
For Production Years 2009 and Onward, this report is not available.

59. AC5 – FCC Custom Processing Fees Paid Report
This report request has not changed.
The report is available in
pdf, csv & xml formats

60. Sunday Openings during Allowable Cost Season
Feb 14, 6:00 am to 5:30 pm (Service Desk on call)
March 7, 6:00 am to 5:30 pm (Service Desk closed)
March 14, 6:00 am to 5:30 pm (Service Desk closed)
March 28, 6:00 am to 5:30 pm (Service Desk closed)
April 4, 6:00 am to 5:30 pm (Service Desk closed)
April 18, 6:00 am to 5:30 pm (Service Desk closed)
April 25, 6:00 am to 5:30 pm (Service Desk closed)
May 9, 6:00 am to 5:30 pm (Service Desk closed)
May 16, 6:00 am to 5:30 pm (Service Desk closed)

61. Training Updated Training Modules
8.3 Manage AC2: Capital and Operating Costs
8.4 Manage AC3: Allowable Costs Reallocations
8.6 Manage AC5: Custom Processing Fees Paid
8.7 Request Allowable Costs Reports
8.8 Query Allowable Costs and Facility Cost Centre
Online Help Pages related to the above processes.
Tip Posted Entitled “Gas Cost Allowance Business Rules and Submission Process for 2009 Production Year and Onward”
Allowable Costs CSV Spreadsheet Upload Templates have been updated with the 2009 data requirements.

62. QUESTIONS All Questions and Responses from today’s presentation
will be posted to the Registry Website under Presentations