REGISTRY INFORMATION SESSION December 2, 2003

Agenda Introductions (Ross – 5 minutes) 2. Registry Update (Wally – 15 minutes) - Overview Industry and Registry Performance 3. EUB Non-compliance (Eileen- 15 minutes) - Appeal and Escalation process 4. IRT Update (Ross – 30 minutes) - Issue/ Opportunity Identification - Preliminary Benefits Assessment Leverage List - Industry Registry Enhancements- Current - Industry Registry Enhancements- Future 5. Question & Answer (all) 6. Possibilities Meeting (10:30 – 11:30 a.m.)

Overview: One Year of Operation 9000 user accounts 3,000,000 on-line hits and 60,000 batches/ month Initial performance/start-up issues resolved Training and change management processes effective and ongoing First round of enhancements proposed, approved and funded by Industry Stakeholders endorsing of new initiatives

Registry Performance Batch Turnaround On-line Performance Key Performance Indicators Impacting Industry Stakeholders Batch Turnaround Batch Completion On-line Performance WIP Performance Change Management (defect correction) Service Desk Response Hours of Operation Provisional Assessments EUB Non-compliance Errors

Batch Turnaround (“Daytime” Batches) Average Minutes to Complete an Industry Batch

Online Targets & Performance “Minimal ‘Timeouts’ and 95% or better turnaround in less than 5 seconds”

Change Management Targets “Incidents” are Registry defects and approved change items Incidents are categorized by criteria of “Impact” and “Scope” Industry proposed: By March 04 be under 50 “Critical”, “High” and “Medium” Incidents Registry Management recommends: By March 04 ‘Critical’ incidents resolved in 1 month, ‘Highs’ resolved in 3 months Alternate approach accounts for varying levels of Registry change activity

Provisional Assessment Trends $MM Original PA Charge As of November 30/03 Remaining PA October $ 254.5 $ 1.2 November $ 142.2 $ 0.8 December $ 96.9 $ 1.3 January $ 32.8 $ 1.5 February $ 90.1 $ 2.9 March $ 56.4 $ 3.2 April $ 45.2 May $ 19.9 $ 2.4 June $ 28.8 July $ 32.2 $ 3.7 August $ 19.3 $ 3.5 September $ 13.9

PA - Sept 03 vs. Aug 03 Discrepancy Type 2003-08 2003-07 Difference % Change Unallocated CSO 12,475 1,302,053 -1,289,578 -99% Cascade 6,767,268 7,082,896 -315,628 -4% Incomplete OAF 241,155 254,100 -12,945 -5% Incomplete SAF 471,005 1,318,447 -847,442 -64% Missing OAF 57,642 127,162 -69,520 -55% Missing SAF 6,397,608 9,239,618 -2,842,010 -31% No cascade 17,750 14,565 3,185 22% No OAF 459 352 0% No SAF 19,595 -19,595 -100% 13,965,362 19,358,788 -5,393,533 -28%

EUB Non-Compliance

EUB Non-compliance Trends

EUB Non-compliance Cumulative Billable Errors

EUB Non-compliance Appeals of Enforcement Decisions Appeals must be received by Dec 10th 2003 Refer to Alerts for EUB Appeal Process for Volumetric Deficiencies and Template Heat ticket/VI is only accepted when the error being appealed is due to a Registry/EUB system problem

EUB Non-compliance Appeals of Enforcement Decisions EUB Process EUB logs the appeal and notifies the requester of the assigned log # (24 hours) EUB reviews the appeal (10 days approx.) EUB will mail a letter with appeal decision Include the name/title that the letter should be addressed in the appeal If name/title not included the letter will be mailed to Manager Production Accounting

EUB Non-compliance Escalation EUB Process EUB does not receive a response to “correct the error” will result in escalation to Level 2 If the operator responds within the timeline they are not escalated to Level 2. Correct the error Appeal the error Submit a plan for correction of the error that is approved by the EUB Interim Escalation Process Two months between Level 1 and Level 2 for a period of six months At the end of six months move back to one month between Level 1 and Level 2

Industry Registry Team Update Issue/ Opportunity Identification Processes Preliminary Benefits Assessment Leverage List Industry Registry Enhancements- Current Industry Registry Enhancements- Future

Issue/ Opportunity Identification Registry Service Desk calls IBC CAPP/ SEPAC Committees RAC Periodic “all operator” surveys (E.g. Recent call-out related to EUB “live billing”) Preliminary Benefits Assessment

IRT Call-out Re: EUB “Live Billing” - Companies listed 737 - Companies with errors 368 - Contacts 280 - Interviews ~160 General Feedback: ~15% of companies indicated that they appreciated the reminder In general comments “decidedly more positive than negative” Major problems by type: # % (of BA’s Interviewed) 1 Errors caused by others 54 34% Increased workload 23 14% More hours of operation 12 8% 4 Delay in reports 5 3% Major compliment: “Great service desk” 20 13%

Preliminary Benefits Assessment: Leverage List IBC Review/Action Items (15) Performance Issues (6) Vendor Issues (13) Training Matters (17) Resolved/Response Provided (74) -Leverage List is key IBC/ IRT tool. Major issues aggressively being pursued. Your involvement is welcome! (See Handout)

Leverage List: Update on Some High Priority Items Continued Industry participation IRT and IBC BII has approved funding for 2004 While total is less than requested, panel strongly endorsed ongoing Industry involvement, encouraged identification of longer-term funding approach CAPP actively reviewing options

Leverage List: Update on Some High Priority Items 2. Late filing of “Receipts” (auto-disposition) Clearly major issue for many operators Past and recommended current practice: Call the other operator, resolve, agree on target timing Standard “request letter” to other operator approved by IBC IRT following up with “problem companies” EUB appeals template will assist in analysis Vendor system constraints? EUB follow-up; IRT analysis; Deadline extension? Other?

Leverage List: Update on Some High Priority Items Training Items IRT and Training Team have met and identified specific recommendations for IBC meeting (Jan) One issue: Changes to Training System Red folders: what’s changed, what’s important Handout identifies all changes since Registry Go-Live, plus all Enhancement training Will also be posted to web site and kept current Recommend trying the Red folder system: Only important changes result in Red Clicking the folder will direct you to the module summary page, which lists changes and links to the changes Reviewing the changes will result in folder turning black

Leverage List: Update on Some High Priority Items 4. Hours of Operation Standard hours have been extended, and one Sunday per month now available Current hours meet the needs of great majority of users, but significant minority requesting more As performance and stability further enhanced, additional extensions will be reviewed Server-to-Server functionality extends hours for this type of operation Your input requested (See Questionnaire)

Leverage List: Update on Some High Priority Items 5. Volume Variance prorating Potential royalty impact Potential Partner reporting impact IRT analysis CSV version enhancements Target January 5, 2004 Summary and Detail report Details for each stream/owner

Volume Variance Report Average “go-live” to 2003-08 -- 18% of allocations have a variance Sample Month of 2003-08 2606 allocations with a variance across 166 BA ID’s 1987 (76%) of the allocations with a variance pertain to royalty trigger activities

Analysis of Royalty Trigger Variances for 2003-08

Analysis of Royalty Trigger Variances for 2003-08

Volume Variance Prorating Conclusions Significant number of allocations are being prorated Industry needs to review to determine Crown Royalty impact Partner Reporting impact CSV enhancements will assist in analysis

2003/4 Industry Enhancements Base Functionality Enhancements Enhanced notification item identification and sorting Enhanced Inbox navigation “Sortable” (CSV) version of EUB non-compliance report Final Partner Reporting Components Oil Royalty/ “net-after-royalty” communication Security modifications Save Report Request Parameters Server-to-Server functionality

2003/4 Industry Enhancements All these changes are in production, or will be by Jan 04 All were funded by voluntary payments from Industry’s top producers. (62/63 companies invoiced have elected to participate so far) Change Leader Handbook Update available to help you get up to speed on these enhancements Possibilities Meeting will review value added opportunities from Server-to-Server functionality

2003/4 Industry Enhancements 3. Additional Pipeline Splits Components Modified approach identified and approved by IBC Endorsed by specific pipeline companies and vendors Final design work targeted Q1 and 2 2004 Implementation Q 4 2004 for specific pipelines Additional pipelines expected to be added over time

Possible Future Industry Initiatives and Opportunities Other Jurisdictions: BC, Yukon, Saskatchewan, Newfoundland, Nova Scotia, NEB Stats Can (greenhouse gas related) Joint Venture Initiatives (operations/audit) Freehold interests Mineral tax Mapping interfaces Analysis data Other IBC, RAC, CAPP committees currently reviewing and prioritizing opportunities for near-term focus

Future Initiatives and Opportunities The Registry provides an excellent foundation to build on: Definitive infrastructure, volumetric data Web-based standardized venue now used by all operators Efficient automated tools in place (server-to-server) Effective access and security

Questions & Answers

Possibilities Meeting

Server to Server Possibilities The Petroleum Registry of Alberta Energizing the flow of information Server to Server Possibilities

“Server to Server” How it Works Kevin Robson Solution Architect (Fujitsu)

What Is Server to Server? One computer working with another computer to carry out a task without manual intervention Within the scope of this enhancement, server to server deals with automating the transfer of data to and from the Registry An extension of services already being offered by the Registry

What Is Covered? Batch submission (uploads) Monthly submissions Infrastructure updates Requests for industry downloads Information retrieval (downloads) Batch submission validation notifications Industry download results DOES NOT cover report results Server to Server communication was seen as initially being most valuable in providing large volumes of information to another system…all the data available in Registry reports is also available in industry downloads Anything that you can submit on the batch upload, submit report request, Industry Downloads

Submission Example Before Server to Server Industry System Petroleum Registry Volumetric Submission Volumetric Submission Submission Response

Submission Example With Server to Server Industry System Petroleum Registry Volumetric Submission Submission Response Volumetric Submission

Result Checking Example Before Server to Server Industry System Petroleum Registry Check Inbox/ Open Results

Result Checking Example With Server to Server Industry System Petroleum Registry List Available Downloads Return List of Available Downloads Request Specific Result Download Return Specific Download

List Available Downloads Request Specific Result Download Polling Details List Available Downloads Check for Results Wait for XX minutes Anything For me? Yes No Download Next Result Request Specific Result Download Update System Yes More on This list? No

Security Considerations All Registry security processes still apply to Server to Server Userid used in server to server needs to be a valid Registry userid for the BA Each request will have to be valid for the BA/userid Each request will verify the userid/password Requests are only through Registry interfaces Not directly hitting the Registry database

Server to Server Usage Each company needs to decide how they are going to use Server to Server Who is submitting? Who should be able to view the results? Need to determine batching and frequency of submissions Need to determine frequency and timing of polling

Server to Server Registry Guidelines Operational approaches and guidelines will evolve over time as the use of Server to Server increases Frequency of polling Recommended timing of large requests Immediate impact will be extension of hours of operation Server to Server activity can approach 24/7 unlike on-line Registry operation Only constrained by activities such as planned maintenance, nightly processing etc.

Possibilities for Server to Server Application Joanne Quirk-Williams Industry Registry Team

Short-term Opportunities Uploads to the Registry Create the batch in your system and upload Currently this is a “manual” process NEW – your system “sends” the file Possibilities Data control – no manipulation of files after creation in your system Reduce Manual Intervention

Short-term Opportunities con’t 2) “Polling” the Registry for “what’s ready” Currently, user must check inbox or email NEW – your system asks “what’s ready” for me? Possibilities Your system can continually poll the Registry throughout the day – no manual intervention When information is ready in the Registry, your system can download it

Short-term Opportunities con’t 3) Download of Data from the Registry Volumetrics, Allocation and Pipeline Split data available for download NEW – can download notifications and results directly into your system Possibilities Manage all facility activity from your system (“done” control panel). Your system has all the information from the Registry and can show the “status” of the facility. No “re-keying” of non-op data Your system becomes the sole interface with the Registry --- the Registry is “invisible” to the user

Longer Term Opportunities Align Registry and Your System Currently, updates are done in your system and in the Registry – potential for out of sync issues NEW – opportunity to automate the validation of infrastructure data and implement automatic monitoring for changes in monthly data

Align Registry and Your System con’t Exception reporting Download from Registry and compare to your system Possibilities Exception report identifies anomalies for the user to analyze and resolve Reduces effort spent to determine why/where things are out of sync (i.e.. Crown royalty actuals versus your estimate could be different due to vintage in your system).

Align Registry and Your System con’t b) Automatic Synchronization of Data Download from Registry and auto update your system to reflect Registry information and vice versa Possibilities Single source of data used for all systems c) Skeletal information resides in your system use details from Registry and supplement with your system (i.e. working interest owners) No duplication of data in more than one spot

Longer Term Opportunities con’t 2) Internal Control Tool Compare and generate exception reports NEW – use server to server to poll and download and identify changes compared to your system Possibilities Exceptions are automatically and immediately identified Minimize rework due to input/reporting errors Examples: final allocation in the Registry compared to pipeline split data in your system auto-analysis of volume variance report auto-analysis of non-compliance report

Future Opportunities Potential future enhancements are being prioritised by IBC and RAC Server to Server can be utilized in most of these enhancements.

Wrap-Up Server to Server parallels to Deerfoot extension It is built and ready for use Will make commuting easier Will take pressure off existing routes Will open up options for entire new communities As users, identify priorities Work with vendors and internal IT staff Assure new product development considers all Possibilities IRT/ Registry Team available to help

Questions??