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What’s Up with Saskatchewan Measurement?
Corvelle Consulting 2/5/2019 What’s Up with Saskatchewan Measurement? Good morning! My name is Yogi Schulz; smile Thank you to CAPPA for inviting me and my partner Clay Long to present today Our topic is: What’s Up with Saskatchewan Measurement? How are you doing, today? Our goal today is to improve your understanding of recent measurement and EPAP developments in Saskatchewan March 2016 What’s Up with Saskatchewan Measurement?
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Yogi Schulz Biography Partner in Corvelle Consulting
2/5/2019 Yogi Schulz Biography Partner in Corvelle Consulting Information technology consulting EPAP implementation and operation Relevant development work: Led EPAP at AER Led PSAP at AER Led measurement at ECON Leading EPAP at ECON Proposed presenter: Yogi Title: Yogi Schulz - Biography Who am I? I’m a Partner of Corvelle Consulting We offer information technology related management consulting We have executed many project management and systems development assignments for our clients in the upstream oil & gas industry With my partner Clay Long, our associates and I also work to help operators implement and operate EPAP I want to highlight a few assignments that are relevant to the Petrinex opportunities I want to describe today: From 2007 until early 2010, I led the project team that developed EPAP for the AER and the oil & gas industry In 2013, I worked with AER pipeline engineers to develop an improved pipeline compliance assurance methodology named PSAP In 2014 and 2015, Clay Long and I worked with the Government of Saskatchewan on the development of the first ever harmonized Directive; Directive 017 for measurement; we hope this directive will be an example that encourages further inter-provincial regulatory collaboration Since early 2015 Clay Long and I have been working with the Government of Saskatchewan on the development and implementation of EPAP for Saskatchewan operators What’s Up with Saskatchewan Measurement?
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Clay Long Biography Partner in Corvelle Consulting
2/5/2019 Clay Long Biography Partner in Corvelle Consulting Senior IT Management Consultant and Project Manager Focus on the oil and gas industry Specializes in: program management project management facilitation Led initiatives in: strategic planning software development & implementation major RFP creation & execution Clay Long Biography Partner in Corvelle Consulting Senior IT Management Consultant and Project Manager Focus on the oil and gas industry Specializes in: program management project management facilitation Led initiatives in: strategic planning software development & implementation major RFP creation & execution What’s Up with Saskatchewan Measurement?
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Presentation Outline Introduction Background Directive PNG017:
Corvelle Consulting 2/5/2019 Presentation Outline Introduction Background Directive PNG017: Measurement Requirements for Oil and Gas Operations Directive PNG076: Enhanced Production Audit Program (EPAP) Guideline PNG028: Initiating and Operating the Enhanced Production Audit Program (EPAP) Discussion Presentation Outline Introduction Safety moment Individual introductions Background First I’ll provide a quick summary of what led Saskatchewan to pursue improved measurement requirements and EPAP Directive PNG017: Measurement Requirements for Oil and Gas Operations Directive PNG076: Enhanced Production Audit Program (EPAP) Guideline PNG028: Initiating and Operating the Enhanced Production Audit Program (EPAP) Discussion What’s Up with Saskatchewan Measurement?
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Corvelle Consulting Profile
2/5/2019 Corvelle Consulting Profile Consulting firm focused on the oil & gas industry Experienced with oil & gas spanning more than 20 years Implemented systems for field data capture, production accounting, financial accounting, public data management Led development of EPAP for the then ERCB Leading EPAP implementation projects Management consulting, data management & IT Project leadership Process review & redesign Data quality & integration Facilitation Corvelle Consulting Profile We are a Calgary consulting firm focused on the Canadian oil & gas industry Corvelle has been consulting in this industry for over 20 years Experienced with oil & gas spanning more than 20 years Implemented systems for field data capture, production accounting, financial accounting Led development of EPAP for the then ERCB; currently leading development of measurement requirements and EPAP for ECON in Saskatchewan Leading EPAP implementation projects and EPAP operation for operators Management consulting, data management & IT Project leadership Process review & redesign Data quality & integration Facilitation What’s Up with Saskatchewan Measurement?
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Background Background
Corvelle Consulting 2/5/2019 Background Background In this section, I’ll provide some background on the reasons that caused the Ministry of the Economy in Saskatchewan to make significant measurement improvements and to introduce EPAP I’ll refer to the Ministry of the Economy in Saskatchewan simply as ECON in this presentation What’s Up with Saskatchewan Measurement?
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Measurement Issues OGCR requirements outdated and lack detail
Corvelle Consulting 2/5/2019 Measurement Issues OGCR requirements outdated and lack detail Some companies operate as if there are no requirements Increasing pressures for environmental, health and safety improvements Recent audit results confirm operator noncompliance Improper measurement and reporting created gaps in production data OGCR measurement requirements outdated and lack detail OGCR - Saskatchewan Oil and Gas Conservation Regulations Some companies operate as if there are no measurement requirements because of a lack of regulatory enforcement Increasing pressures for environmental, health and safety improvements The EHS track record of the industry is actually excellent and continues to improve but society’s expectations are increasing more quickly Recent audit results confirm a serious lack of operator compliance with various regulator requirements including measurement Lack of compliance is cause for concern with respect to environment, safety, health , resource conservation and reservoir management Inaccurate and incomplete measurement and reporting has created significant gaps in production data on Petrinex Accurate and complete measurement data is required to: ensure accurate crown royalty invoicing promote the development of adequate natural gas collection and processing facilities What’s Up with Saskatchewan Measurement?
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This audit was conducted for a small random sample of facilities
Corvelle Consulting 2/5/2019 2013 ECON Audit Results This graph illustrates some of the results from the 2013 field audits that ECON staff conducted The worst noncompliance was around metering, where 16 out of the 20 facilities, or 80% were noncompliant This audit was conducted for a small random sample of facilities Unfortunately, the sample size is not large enough that we can confidently extrapolate the results to all Saskatchewan facilities However, this audit raised the level of concern with respect to noncompliance at ECON significantly ECON expects to improve the state of measurement through Directive PNG017: Measurement Requirements for Oil and Gas Operations What’s Up with Saskatchewan Measurement?
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2014 Single Well Battery Field Audit
Corvelle Consulting 2/5/2019 2014 Single Well Battery Field Audit This graph illustrates some of the 2014 audit results for the field audit conducted at 60 high-risk sour gas Single Well Batteries This audit shows that only 12% failed with respect to metering However, this field audit was focused on sour gas emissions and only the most obvious metering noncompliances were recorded 36 of the 60 single well batteries audited or 60% were shut-in due to significant noncompliances for venting and emissions of sour gas What’s Up with Saskatchewan Measurement?
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Estimated Reporting Discrepancy for Fuel, Flare and Vent
Corvelle Consulting 2/5/2019 Estimated Reporting Discrepancy for Fuel, Flare and Vent Estimated Reporting Discrepancy for Fuel, Flare and Vent This graph illustrates the gap between what Environment Canada has estimated based on their detailed research of other available data and the reported volume of gas contributing to GHG emissions from oil and gas operations in Saskatchewan The red bars are the Environment Canada Estimates and the blue bars are the volumes reported by operators to Petrinex This is based on 2012 data and suggests that only a third of the total volume of Fuel, Flare and Vent gas in Saskatchewan is being reported to Petrinex We’re not sure how accurate the Environment Canada estimate is, but the significant gap does highlight that we may have a serious reporting problem ECON expects to improve its understanding of the level of measurement and reporting compliance by introducing Directive PNG076: Enhanced Production Audit Program (EPAP) What’s Up with Saskatchewan Measurement?
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If you think compliance is expensive, try noncompliance . . . UGH!
Corvelle Consulting 2/5/2019 If you think compliance is expensive, try noncompliance . . . UGH! If you think compliance is expensive, try noncompliance . . . UGH! Some of you may be thinking these new measurement and EPAP requirements are regulatory overkill or border on excess The PNG017 measurement requirements are more about explaining more prescriptively what the measurement requirements are in Saskatchewan than about introducing a lot of new or onerous measurement requirements EPAP is specifically designed to be the most cost-effective way possible to achieve a reasonable level of assurance with respect to the state of compliance What’s Up with Saskatchewan Measurement?
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Directive PNG017: Measurement Requirements for Oil and Gas Operations
Corvelle Consulting 2/5/2019 Directive PNG017: Measurement Requirements for Oil and Gas Operations Directive PNG017: Measurement Requirements for Oil and Gas Operations In this section, we’ll discuss a summary of Directive PNG017: Measurement Requirements for Oil and Gas Operations Directive PNG017 is the first ever harmonized directive between Alberta and Saskatchewan If you read Directive PNG017 you can be absolutely assured that everything you read also applies in Alberta In the few places where the two provinces differ, Directive PNG017 highlights the difference through a prominent box What’s Up with Saskatchewan Measurement?
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New Requirements for Saskatchewan
Corvelle Consulting 2/5/2019 New Requirements for Saskatchewan Replace provisions in The Oil and Gas Conservation Regulations, 2012 Petrinex functionality has been expanded Explicit sampling and analysis requirements throughout Directive PNG017 Measurement points identified Measurement schematics New Requirements for Saskatchewan So what major measurement and reporting changes have been made? The new requirements in Saskatchewan are largely harmonized with Alberta Directive 017 and replace the existing provisions in The Oil and Gas Conservation Regulations The changes are quite significant for Saskatchewan operators, primarily because the existing rules are unclear or, in some cases, non-existent I can’t go through all of the changes but will discuss a few of the more significant ones In preparation of the Directive coming into force, Petrinex functionality was expanded for Saskatchewan operators: Adopted proration battery subtypes Defined criteria for paper battery facility subtype Defined Crude Oil Type based on actual density Light, Medium or Heavy designation will be based on its actual oil density, rather than its geographic area, which had been the case in some instances As a result, some heavy oil is now being produced in the Swift Current area, rather than being designated as medium oil. For clarity, this change will not impact the way Crown royalties are currently determined. Explicit sampling and analysis requirements throughout Directive PNG017 Sediment and Water determination in Section 14 and Appendix 3 Truck sampling in Section 10 Gas and liquid sampling and analysis methodology and standards in Section 8 Measurement points identified Delivery point measurement identified with uncertainty requirements Metered vs estimated measurement; if the volume at a facility exceeds 500 cubic meters of gas per day, it must be metered Measurement schematics Comes into force effective April 1, 2018 operators are required to maintain a measurement schematic of each facility, which shows the current physical layout of the facility schematics will not have to be submitted to the regulator, unless requested This requirement will not come into effect until April 1, 2018, to provide sufficient time for operators to prepare What’s Up with Saskatchewan Measurement?
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Major Differences Between SK and AB
Corvelle Consulting 2/5/2019 Major Differences Between SK and AB Saskatchewan has facility subtypes specific to Heavy Oil Condensate produced at a gas well Royalty triggers Sulphur requirements do not apply Major Differences Between SK and AB Saskatchewan has facility subtypes specific to Heavy Oil 313 - Heavy Crude Oil Paper Battery 325 - Heavy Crude Oil Single-Well Battery 326 - Heavy Crude Oil Multiwell Group Battery 327 - Heavy Crude Oil Multiwell Proration Battery These facility subtypes make it easier to link specific measurement requirements with a particular facility Condensate produced and separated at a gas well If recombined with gas, reported as GAS Production If delivered in liquid form, reported as COND Production Royalty Triggers: SK does not charge royalties on natural gas liquids SK Gas royalties payable at the wellhead Sulphur measurement requirements in section 11 do not apply in Saskatchewan Saskatchewan does not have the equivalent of the S-30 Monthly Gas Processing Plant Sulphur Balance Report What’s Up with Saskatchewan Measurement?
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Implementation of New Requirements
Corvelle Consulting 2/5/2019 Implementation of New Requirements Directive PNG017 effective April 1, 2016 Measurement exemptions rescinded Existing facilities must become fully compliant New facilities must be fully compliant Implementation of New Requirements ECON recognizes that the changes being introduced are significant and that some operators may be under pressure to learn and implement the new requirements. As a result, ECON has attempted to alleviate that pressure as much as possible through its implementation plan for Directive PNG17. Directive PNG017 comes into force effective April 1, 2016 Operators were notified about ECON’s plan to introduce PNG17 in May 2015 with posting of Directive PNG017 Operators have been provided an opportunity to familiarize themselves with the new measurement and reporting requirements prior to it coming into force effective April 1, 2016 Measurement exemptions rescinded All existing measurement exemptions will be rescinded Many current exemptions may not be necessary under the new requirements If an exemption is required, an operator must apply and receive approval from ECON through the Integrated Resource Information System (IRIS) Facilities that currently exist: Must be fully compliant with current measurement requirements Necessary improvements to meet Directive PNG017 requirements can be phased in over a four-year period Operators expected to make significant progress each year; with approximately 25 percent of necessary remediation is to be implemented each year ECON does not prescribe how the annual implementation percentage is determined Not mandatory for operators to submit supporting documentation regarding the progress they are making each year However, ECON will audit progress and documentation must be provided on request Operators must also declare that they are making progress during the phase-in period, through their annual EPAP declaration All operators must fully implement Directive PNG017 requirements by March 31, 2020 New facilities must be designed, constructed and operated in compliance with Directive PNG017 requirements New facilities are those licensed after April 1, 2016 What’s Up with Saskatchewan Measurement?
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Available Measurement Information and Resources
Corvelle Consulting 2/5/2019 Available Measurement Information and Resources Directive PNG017 FAQs about Directive PNG017 Compliance Reporting Tool Ministry of the Economy Website ECON Measurement Committee Petroleum and Natural Gas (PNG) Support Desk Available Measurement Information and Resources Directive PNG017 Updated version will be posted prior to April 1, 2016 FAQs about Directive PNG017 Answers to some common questions Compliance Reporting Tool Spreadsheet to plan and measure an operator’s implementation progress during the four-year phase-in period This tool, in the form of an Excel spreadsheet, is simply an aid developed by ECON to assist industry, and is not mandatory or prescribed Other methodologies and documentation to measure an operator’s progress are also acceptable However, some form of documentation will be required to demonstrate that an operator is making progress Ministry of the Economy Website ECON Measurement Committee Petroleum and Natural Gas (PNG) Support Desk What’s Up with Saskatchewan Measurement?
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Corvelle Consulting 2/5/2019 Any chance I could get shorter, easier to understand measurement instead? What do you say when a Leprechaun offers you a pot of gold? Any chance I could get a shorter, easier to understand measurement requirements instead? Some people groan or a overwhelmed when they first flip through Directive PNG017 However, the contents are seen as providing not just measurement requirements but also useful guidance for measurement operation What’s Up with Saskatchewan Measurement?
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Directive PNG076: Enhanced Production Audit Program (EPAP)
Corvelle Consulting 2/5/2019 Directive PNG076: Enhanced Production Audit Program (EPAP) Directive PNG076: Enhanced Production Audit Program (EPAP) In this section, we’ll discuss a summary of Directive PNG076: Enhanced Production Audit Program (EPAP) When you read Directive PNG076, you will see that the requirements are identical to Alberta There are phrasing and formatting differences between the Saskatchewan and Alberta directive versions We have tried to apply the results of five years of EPAP experience in Alberta to the writing of the Saskatchewan directive We hope you will find the Saskatchewan directive clearer What’s Up with Saskatchewan Measurement?
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EPAP Goals Shift how operators demonstrate compliance
Corvelle Consulting 2/5/2019 EPAP Goals Shift how operators demonstrate compliance Raise level of assurance over Directive PNG017 compliance Encourage continuous improvement EPAP Goals The goals of EPAP remain identical between the provinces Shift how operators demonstrate measurement & reporting compliance with the requirements described in Directive PNG017 and R01 Shifting from onus being on the Regulator to demonstrate noncompliance to operator demonstrating that infrastructure to maintain compliance exists and is functioning Raise level of assurance over Directive PNG017 compliance Level of assurance is how well we understand something Encourage continuous improvement in measurement & reporting business processes, controls and compliance What’s Up with Saskatchewan Measurement?
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EPAP Components Controls Declarations Evaluation of Controls
Corvelle Consulting 2/5/2019 EPAP Components Controls Declarations What does EPAP consist of? EPAP consists of these 6 Major Components Controls Controls are what the operator uses to minimize the risk of noncompliance Our guidance to operators is to strengthen controls where necessary Evaluation of Controls Evaluation of Controls are what the operator conducts throughout the year to evaluate the effectiveness of controls Our guidance to operators is to conduct a few evaluations of controls each year to achieve a reasonable level of assurance over the state of compliance Declarations These are the operator declarations that are submitted annually to the Regulator, through the EPAP system on Petrinex, about the state of compliance at the operator’s facilities Our guidance to operators is to submit an EPAP Declaration to the Regulator on time every year Compliance Assessment – This EPAP component is where we’ll spend our time today Compliance Assessment is the process that both operators and the Regulator use every month to identify indicators of potential noncompliance The Regulator produces a Compliance Assessment Report for every operator based on anomalies detected in the data that operators submit to Petrinex Operators are encouraged to investigate and resolve items listed on the Compliance Assessment Report Our guidance to operators is to investigate and resolve a few items each month and thus avoid further Regulator scrutiny We recommend avoiding the next two components: Workflow - Regulator initiated Workflows are formal Regulator direction to operators to investigate indicators of potential noncompliance including CAI Report items we’re here to discuss today Workflows can be initiated and responded to at any time Our guidance to operators is to perform enough EPAP-related work to minimize the risk of the Regulator issuing a Workflow and thus receive further Regulator scrutiny Compliance Assurance Compliance Assurance is the process that the Regulator uses when operators fail to respond to Workflows The Regulator will direct the operator to provide more information if an investigation and subsequent mitigation fail to correct an indicator of potential noncompliance Compliance Assurance can occur at any point in the year Our guidance to operators is to submit a credible declaration, respond to Regulator-initiated Workflows promptly and thus avoid Compliance Assurance altogether AER has rescinded D019 and has not yet defined a replacement approach Any comments about these EPAP components? Are any of them creating difficulties for you? Evaluation of Controls Compliance Assessment Workflow Regulator initiated Compliance Assurance What’s Up with Saskatchewan Measurement?
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EPAP Declaration Timeline
Corvelle Consulting 2/5/2019 EPAP Declaration Timeline Submission Deadline Submission Period Declaration Period - 12 months EPAP Declaration Timeline There are a number of components in the EPAP Declaration Timeline This visual representation helps to describe all the pieces and how they relate to each other Every EPAP Declaration timeline is a 14 month period Declaration Month The entire timeline is anchored by the Declaration Month that has been assigned to every Saskatchewan operator The Declaration Month is the twelfth month of the twelve-month Declaration Period Declaration Period - 12 months The Declaration Period is the 12 month period that the assertions of the Declaration text and the data reported in the attachments apply to The Declaration Months assigned to Saskatchewan operators have been distributed across the Declaration Period to equalize the workload of ECON staff Submission Period The Submission Period is the second month after the Declaration Month or the 14th month of this timeline The EPAP Declaration functionality on Petrinex is available to accept data from the operator during the Submission Period The 13th and 14th months exist to provide ample time for the operator staff to consolidate the results of the evaluations of controls in preparation for entering the data in Petrinex Submission Deadline The Submission Deadline is the last day of the Submission Period or the 14th month This timeline suggests that the operator staff should meet with the senior executives either late in the 13th month or early in the 14th month to review the results of the year’s work and have the declaration signed 1 2 3 10 11 12 13 14 1 2 3 Declaration Month Declaration Period 12 months What’s Up with Saskatchewan Measurement?
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SK EPAP Declaration Differences
Corvelle Consulting 2/5/2019 SK EPAP Declaration Differences SK & AB declarations are almost identical. The major differences are assertions 5 & 7 Assertion #5 is about the CAI Report CAIs are part of EPAP and this assertion is intended to acknowledge the existence of CAIs Assertion #7 is the assertion for measurement and reporting remediation progress, not EPAP progress For assertion #7, unlike AB’s declaration, measurement remediation progress must be asserted during the first 4 years of the program Operators have the flexibility to measure measurement remediation implementation in any way they see fit, so long as it’s defensible Operators may choose to use the Compliance Reporting Tool that ECON has provided The assertions you’ve all seen before are for EPAP level of assurance and remediation of controls that were concluded as not effective What’s Up with Saskatchewan Measurement?
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Implementation of New Requirements
Corvelle Consulting 2/5/2019 Implementation of New Requirements Directive PNG076 effective April 1, 2016 Trial declaration period from April 1, 2016 to November 30, 2016 Your Declaration month has been ed to your EPAP Change Leader from PNG Support Implementation of New EPAP Requirements Directive PNG076 is effective April 1, 2016 Trial declaration period from April 1, 2016 to November 30, 2016 Likely a good period to initiate EPAP for Saskatchewan within your organization Your Declaration month has been ed to your EPAP Change Leader from PNG Support What’s Up with Saskatchewan Measurement?
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Available EPAP Information and Resources
Corvelle Consulting 2/5/2019 Available EPAP Information and Resources Directive PNG076 FAQs about Directive PNG076 Ministry of the Economy Website Petroleum and Natural Gas (PNG) Support Desk Available EPAP Information and Resources Directive PNG076 Updated version will be posted prior to April 1, 2016 FAQs about Directive PNG076 Answers to some common questions Ministry of the Economy Website Petroleum and Natural Gas (PNG) Support Desk What’s Up with Saskatchewan Measurement?
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Sask ECON Roadshow 2/5/2019 “We’re going to parachute in and conduct a surprise evaluation of controls, but I want to keep the whole event low key.” When we descend on a facility to conduct an evaluation of controls with the operations and PA staff, it’s often far from low key There’s often a lot of apprehension about being evaluated or blamed for issues that the operations and PA staff can’t control It’s up to us to defuse the apprehension and to set a collaborative tone that encourages continuous improvement What have you found helpful to defuse apprehension and encourage collaboration? “We’re going to parachute in and conduct a surprise evaluation of controls, but I want to keep the whole event low key.” What’s Up with Saskatchewan Measurement?
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Corvelle Consulting 2/5/2019 Guideline PNG028: Initiating and Operating the Enhanced Production Audit Program (EPAP) Guideline PNG028: Initiating and Operating the Enhanced Production Audit Program (EPAP) In this section, we’ll discuss Guideline PNG028: Initiating and Operating the Enhanced Production Audit Program (EPAP) When you read Guideline PNG028, you will see huge differences compared to the EPAP Operators’ Handbook for Alberta Despite these differences be assured that the goals of EPAP remain identical between the provinces We have tried to apply the results of five years of EPAP operation experience in Alberta to the writing of the Saskatchewan guideline We hope you will find the Saskatchewan guideline clearer, more tactical, easier to understand and easier to implement If you follow the steps described in each section of the guideline you will be assured that you are operating EPAP in a manner that is compliant, comprehensive and still cost-effective What’s Up with Saskatchewan Measurement?
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Major EPAP Operation Processes
Corvelle Consulting 2/5/2019 Major EPAP Operation Processes Design Choices for Operating EPAP Annual EPAP Declaration Ongoing Remediation Arising from Evaluations of Controls Monthly CAI Report Ongoing Regulator-initiated Workflows Major EPAP Operation Processes Design Choices for Operating EPAP operators apply their professional judgment to making these Design Choices The goal is to operate EPAP with compliance and with minimum effort while ensuring that a reasonable level of assurance is being achieved Operators must be confident that the assertions stated in the declaration text are true Annual EPAP Declaration These are the processes that an operator performs to complete the Annual EPAP Declaration The goal is to complete the Annual EPAP Declaration on time and with minimum effort while ensuring that an reasonable level of assurance has been achieved If the number of Acceptable Reporting Themes is increasing year over year, that is an excellent indicator of continuous improvement Ongoing Remediation Arising from Evaluations of Controls These are the processes that an operator performs to remediate controls that were concluded as not effective The goal is to remediate controls with minimum effort while ensuring that continuous improvement is occurring If the number of controls requiring remediation is decreasing year over year, that is an excellent indicator of continuous improvement Monthly CAI Report These are the processes that an operator performs to investigate and perhaps remediate the contents of the Monthly CAI Report The goal is to gradually reduce the number of lines on the Monthly CAI Report as remediation is completed A decreasing number of lines on the Monthly CAI Report is an excellent indicator of continuous improvement Ongoing Regulator-initiated Workflows These are the processes that an operator performs to address Regulator-initiated Workflows The goal is to avoid receiving these Workflows by submitting the annual EPAP Declaration and by investigating and remediating the Monthly CAI Report What’s Up with Saskatchewan Measurement?
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EPAP Initiation Project Tasks
Corvelle Consulting 2/5/2019 EPAP Initiation Project Tasks Assign project manager and project resources Conduct an initial EPAP assessment Brief managers and senior executives Build awareness of operator staff Develop project plan Execute project plan Estimate of annual EPAP operation effort EPAP Initiation Project Tasks This is a list of acceptable practice, high-level task associated with initiating EPAP at an operator The goal is to initiate EPAP in a reasonably comprehensive way that prepares the operator for EPAP operation without spending excessively Assign project manager and project resources Assign someone to lead initiating EPAP Asking someone to run the initiation from the corner of their desk will work only at the smallest operators Conduct an initial EPAP assessment The initial EPAP assessment provides a sense of the state of compliance with measurement and reporting requirements and the state of controls Brief managers and senior executives Report on the findings of the initial EPAP assessment Make recommendations about how to initiate EPAP Build awareness of operator staff Develop and deliver an EPAP overview for operator staff Develop project plan to initiate EPAP Have a manager or senior executives approve the project plan Approval typically includes approval of approach, project resourcing, budget and timeline Approach typically encompasses roles & responsibilities of various internal operating areas and the extent to which EPAP operation will be outsourced Execute project plan Perform the tasks in the approved project plan Estimate of annual EPAP operation effort Produce an estimate of annual EPAP operation effort and cost What’s Up with Saskatchewan Measurement?
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Corvelle Consulting 2/5/2019 Acceptable Practices PNG028 describes examples of acceptable practice that achieves EPAP compliance PNG076 provides significant latitude for operator professional judgment Operators may adopt other acceptable practices in the operation of EPAP Acceptable Practices Guideline PNG028 describes examples of acceptable practice that achieves EPAP compliance The guideline is full of “Operators may”, “Operators are encouraged to”, “Operators should” The intent is for operators to give serious consideration to adopting these examples of acceptable practice All the “must” statements in the guideline make reference to requirements in Directive PNG076 There are no new or additional “must” statements in the guideline Readers of Directive PNG076 will be aware that EPAP requirements provide significant latitude for operator professional judgment The judgment exists because ECON recognizes that operators vary a lot in terms of size, type and age of facilities, business processes and culture These differences greatly influence what constitutes acceptable practice that achieves EPAP compliance Operators may adopt other acceptable practices in the operation of EPAP, than those described in the Guideline, provided that these other acceptable practices achieve a reasonable level of assurance with respect to measurement and reporting requirements We believe the example acceptable practices described in PNG028 are excellent; that’s why they’re in the document However, we are aware of other practices that are acceptable Often these practices are specifically mandated by senior executives to ensure they can confidently sign the EPAP Declaration That’s not only acceptable, it’s desirable because it indicates that operators are being thoughtful about their approach to operating EPAP What’s Up with Saskatchewan Measurement?
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Reasonable Understanding
Corvelle Consulting 2/5/2019 Reasonable Understanding That’s plenty. By the time we add an introduction, a few illustrations and a conclusion, it will look like a management report. I think we have enough information now, don’t you? Reasonable Understanding I think we have enough information now, don’t you? All we have is one supposed “fact” you made up. That’s plenty. By the time we add an introduction, a few illustrations and a conclusion, it will look like a management report. The EPAP requirements state that operators must make a reasonable effort to understand their state of compliance We don’t need to let this work take over our life We don’t need to become perfect in our measurement and reporting We do need to demonstrate that we’re making a reasonable effort and that continuous improvement is occurring What might be some indicators that we have a Reasonable Understanding? Number of Reporting Themes concluded as Deficient is going down Number of CAI Report items on CAI Report is going down All we have is one “fact” you made up. What’s Up with Saskatchewan Measurement?
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Thinking Creatively Stuck on escalator video
Corvelle Consulting 2/5/2019 Thinking Creatively Stuck on escalator video File: People stuck on escalator.wmv Think outside the box Don’t just throw up your hands and ignore real problems Involve other disciplines in the investigation No one is expecting you to be Superman or Superwoman What’s Up with Saskatchewan Measurement?
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Conclusion Conclusion
Corvelle Consulting 2/5/2019 Conclusion Conclusion We’ve reached the wrap-up of the luncheon presentation for today What’s Up with Saskatchewan Measurement?
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Corvelle Consulting 2/5/2019 Conclusion Saskatchewan has improved definition of measurement requirements Saskatchewan is implementing EPAP Many resources available to help Conclusion Saskatchewan has improved definition of measurement requirements by publishing Directive PNG017 Remediate facilities to improve measurement compliance Saskatchewan is implementing EPAP through Directive PNG076 Raise your level of assurance with respect to measurement and reporting compliance Evaluate your controls, submit your declaration in 2017, investigate items on CAI Report Many resources available to help you improve your measurement and reporting ECON website Guideline PNG028 Attached section of resources that we can send you; please request copy of presentation by What’s Up with Saskatchewan Measurement?
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Discussion Have you found our time together helpful? Any Questions?
Corvelle Consulting 2/5/2019 Discussion Have you found our time together helpful? Any Questions? What’s Up with Saskatchewan Measurement?
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What’s Up with Saskatchewan Measurement?
Corvelle Consulting 2/5/2019 What’s Up with Saskatchewan Measurement? Yogi Schulz (403) Mark Perrin (403) Clay Long (403) Mel Miners (403) What’s Up with Saskatchewan Measurement? Corvelle Consulting 300, Ave. S.W. Calgary, Alberta T2P 0L6 What’s Up with Saskatchewan Measurement?
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