Lorraine Corona Manager, Data Mining Services Financial Management Lorraine Corona Manager, Data Mining Services

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.

Learning Objective The attendee will be aware of upcoming edits, interest, and CMP-2014 issues upon completion of this course.

Financial Management Organization Barbara Lambert Manager Financial Management 303-231-3217 Jay Gustin Manager Systems Team 303-231-3673 Glen Reese Manager Distribution & Disbursement Support Services 303-231-3160 Hans Meingast Manager Financial Services 303-231-3382 Paul Knueven Manager Accounting Services 303-231-3316 Lorraine Corona Manager Data Mining Services 303-231-3671 Accounts Receivable Billing Debt Collection Volume Comparison Accounts Payable Reference Data Agreement Monitoring General Ledger Royalty Reporting Processed Gas Pricing Repetitive Reporting Net Negative

Financial Management Royalty Reporting New Front End Edits Tighten royalty rate edits for multiple royalty rates Tighten offshore gas price thresholds Federal net negative Original line monitoring Repetitive reporting Reporter Training Being modified Sessions to be scheduled for Fall 2017 LNG If you sell LNGs, use product code 03

Financial Management Interest Interest on royalty overpayments All corrections for the payment of interest have been processed Interest on Cross Lease Netting (CLN) Advise your Financial Services billing representative of the situation If it is the only reporting on a report, we can prevent it from being processed by the interest program, or We can inactivate the lines prior to issuance of the invoice if we can confirm the CLN If it is invoiced, we can still credit it once we confirm the CLN

Financial Management Interest (cont’d) If you paid $1,000 a year ago but find out that you only owe $900, when the reversal and rebook is made, it nets to a $100 overpayment to ONRR which is recouped in the current report. We expect we would simply not receive interest on this refund. Instead, under ONRR’s calculations, we owe one year’s interest on the $900 line with no benefit that ONRR had our $1,000 the entire year. Is this correct or is something wrong with ONRR’s assessment of interest? Interest on the $900 is NOT correct Interest processes each report separately For interest to calculate correctly, the reversal and re-entry need to be for the same lease on the same report

Financial Management CMP 2014 ACM continues to fine tune their review processes and has disseminated guidance on: Partial acceptance CMP-2014s, and Expediting the review time for the submitted CMPs FM continues to review and fine tune the following:  The override processes for timely review and feedback,  Interest Billings and Indian Over Recoupment Billings impacted by multiple CMP-2014 acceptances, The impact of the CMP-2014s on the Debt Collection processes

Financial Management CMP 2014 (cont’d) FM system change requests that impact CMP Interest Billings and Open Receivables Refine how interest is assessed for multiple CMP reports submitted for one PAD; this will resolve the significant over-assessment of interest for Net CMP reports released over various billing cycles Correct how receivables are generated on multiple accepted CMP reports with the same PAD ACM and FM will receive comprehensive CMP training in April 2017 Industry Frequently Asked Questions document on ONRR.gov, which can be located under: Reporting/Paying > Royalty Reporting > Instructions and References > Form CMP-2014 Frequently Asked Questions