REGISTRY INFORMATION SESSION September 27, 2004

Agenda: Information Session Introductions 2. DOE/Registry Update Provisional Assessment Update IT Security Meeting Change Initiation/Change Management 3. EUB Update Coal Bed Methane Water Reporting Reporting Error Rates Pipeline Shadow Billing 4. IRT Update BC Update IRT/IBC Focus Items Production Accountant Work Cycle 5. Questions & Answers

DOE/Registry Update Provisional Assessment Update IT Security Meeting Change Initiation/Change Management

A. DOE Provisional Assessment Trends ($MM)

DOE PA Trends (con’t)

B. IT Security Meeting Comprehensive External Third Party Petroleum Registry of Alberta IT Vulnerability Assessment   Purpose: To assess the overall effectiveness of the perimeter security and determine if existing security mechanisms are well implemented and configured.    Completion date:       End of Sept. 2004 Report and Findings:    Mid Oct. 2004 Report to Registry Steering Committee: End of Oct. 2004 Report to Industry: Next bi-annual Industry PRA IT Security meeting, early Nov. 2004

C. Change Initiation/ Change Management

Change Initiation The Registry Team encourages feedback from all Industry users on ways to improve the performance and functionality of the Registry application. Your method of communication to the Registry may vary depending on the nature of the issue. If not sure on who to contact first, always start with the Registry Service Desk. No concern is too big or too small !

Short Term Issues These can generally be described as a business process in the Registry that is not performing to your expectations. If so, contact: Registry Service Desk A HEAT ticket will be raised. Should a change be required, it will flow into the Registry’s Change Management Process. Communication on the correction will occur either through the Registry’s “Tips and Alerts” area (if broad-based) or via a phone call from the Service Desk (individual-based)

Longer Term Issues The Registry is performing correctly in terms of its day-to-day business operations, however you may have a suggestion for change. In this case, contact: Industry Benefits Committee Other IBC members can confirm if this is an issue for them as well, or if it is in fact unique. IRT staff are present at IBC meetings – they may be able to respond to the issue immediately or carry the issue for you. Registry Enhancement Suggestion Form Found on Registry website, under “Service Desk” Form is faxed to Service Desk, and sent to Business Change Manager (BCM). BCM collects the suggestions and works with IRT to log the item and determine its feasibility to move forward to IBC, etc.

Policy Issues For issues surrounding the underlying Ministry or Registry Policy, contact: Industry Benefits Committee Will either support pursuing the matter or determine the matter is not of concern to other Industry companies. Industry Manager (Ross Weaver) Will determine if the matter should be reviewed with the IBC, even if the initiator is unable to attend the IBC meeting.

Governance For questions or concerns on the ongoing governance of the Petroleum Registry, contact any combination of : Industry Manager (Ross Weaver) Registry Advisory Committee Chair (Dave Van Kampen) Registry Steering Committee Industry Representatives (Joanne Weiss (CAPP); Jim Screaton (SEPAC))

Change Initiation Summary: Short Term Performance Related Matters Registry Service Desk Longer term Issues or Concerns Industry Benefits Committee Registry Enhancement Form Policy Issues Industry Manager Governance Concerns or Questions Registry Advisory Committee Chair Registry Steering Committee Representative

Change Management Distinction between Problem Management and Change Management Not all ‘problems’ will require a change to the Registry application. Initiation for change can originate from a variety of sources: HEAT ticket Registry Team Communication Ministry Staff Communication

Change Management (con’t) The application employed by the Registry to manage change: Visual Intercept or “VI”. Changes are reviewed each week by the Change Management Team, which is comprised of each of the stakeholder groups: DOE (all business units) EUB Industry Registry AT and Registry Development The Change Management Team determines the priority and timing of each and every VI.

Change Management (con’t) Priority setting is an integral aspect of the Change Management Process. Each VI is analyzed for its scope and impact:   5 4 3 2 1 Scope H C M L Impact

Change Management (con’t) Change Items (VI’s) are slotted into monthly releases. VI's that are implemented outside of the release boundary (mid month, for example) follow the same process as release items. The Registry’s release cycle is generally the first Wednesday of each month, however check the Registry Calendar and Broadcast Messages for any updates. The Change Management process follows the DOE’s System Delivery Lifecycle methodology. The Registry’s Acceptance Testing area includes members of all stakeholder groups.

Change Management (con’t) The Change Management Team has been busy! Approx. 1000 open change items at go-live, 50% critical/high. Currently 350 open change items, 0 critical, 30% high. Over 2200 post go-live items raised and 1900 closed; over 1700 pre go-live items raised and 1650 closed. Initiative under way to review the open high items, to confirm they are in fact still a high priority. Please make sure to also review the “incident list” and “resolved list” in the Service Desk area of the Registry website Tremendous improvements made to the Registry since go-live….but we’re continually trying to making it better!

EUB Update Coal Bed Methane Water Reporting Reporting Error Rates Pipeline Shadow Billing

A. Coal Bed Methane Coal Bed Methane (CBM) also known as natural gas in coal (NGC). Two new well status fluid codes will be available in the Registry October 6th 2004: Coal Bed Methane – Coals and other Lithologies (CBMOT) Well is completed in coal and another lithology (e.g. Sands, Gravel) Fluid Code 22 Coal Bed Methane – Coals Only (CBMCLS) Well is completed in coals only Fluid Code 23 New well status fluids codes will be used with existing mode codes e.g. CBMCLS Flow N/A N/A 23 10 00 00

Coal Bed Methane (con’t) New CBM wells brought on production must use new status. Existing CBM wells coded as Gas are expected to be changed to CBM by the end of this year (2004). CBM wells have the same business rules as Gas wells. No changes to volumetric reporting requirements. An Alert will be issued by September 30th, 2004.

Water Reporting May 23, 2003 EUB agreed to CAPP’s request not to impose noncompliance fees on metering differences for water. This was subject to EUB review of reporting. A recent review found an unacceptable level of water balance errors. Total number of monthly water errors are close to total number of chargeable errors. Trend indicates fewer errors are being corrected.

Water Reporting (con’t)

Water Reporting (con’t) Water volumes are expected to be submitted by the 18th of each production month. Operator is expected to balance water at a facility. EUB encourages all operators to review internal processes for water reporting. Water errors will be monitored over the next few months.

Reporting Error Rates 2004-04 2004-05 2004-06 2004-07 # Operators Invoiced 79 91 77 81 # Chargeable Errors 344 292 265 378 $ invoiced $50,000 $45,600 $34,900 $71,400 # Appeals 26 22 21 # Granted 24 18 Net $ $32,200 $35,500 $28,600

Reporting Error Rates (con’t) 2004-04 2004-05 2004-06 2004-07 Missing Well 99 88 93 154 Metering diff 70 56 64 62 Imbalance 50 66 67 37 Missing Facility 39 41 21 84 'P' Pending 31 17 16 Other 22 10 3 25 Total 344 292 265 378

Pipeline Shadow Billing October 2003 - Pipeline Operators were exempt from noncompliance fees due to concerns surrounding pipeline volumetric reporting issues. May 2004 - Changes to the Registry were implemented to address these issues.

Pipeline Shadow Billing (con’t) September 2004 - Pipeline Operators notified that EUB will commence shadow billing for the November 19th filing deadline. Shadow billing will be in place for a six month period prior to payable invoices. Industry Registry Team will contact individual pipeline operators to offer assistance.

IRT Update BC Update IBC 04/05 Priorities for: 1. Registry Enhancements 2. IRT/IBC Focus C. PA Work Cycle

A. BC Update Joint Working Group (BC Ministry of Revenue, BC Ministry of Energy and Mines, BC Oil and Gas Commission, Duke, Producers) has completed its review of changes that would be required to Ministry, Industry and Registry systems High Level Cost Benefit Assessment completed (including Industry portion) Discussions underway concerning Registry licence fee and governance Next step is +/- 50% costing of Registry changes by Fujitsu

B. IBC 04/05 Priorities Industry priorities for Registry Enhancements and IRT/IBC focus: Identification of opportunities/needs Rating by IBC Ranking by IBC Review by RAC Industry Consultation Group (initial), CAPP Accounting Committee, Industry Steering Committee Final review by RAC Industry Consultation Group

B. IBC 04/05 Priorities (con’t) A. Registry Enhancements : “Promote” recommendations: -DOE and EUB related changes -Incorporation of other jurisdictions (BC, Sask) 2. “VI” Change Management recommendations: -Primarily Report Enhancements 3. “Capital Projects” requiring incremental funding (analysis, costing, formal business cases and additional approvals required): -BC -Pipeline Splits

B. IBC 04/05 Priorities (con’t) B. IRT/IBC Focus Items: 1. Base IRT support activities Voice on Management Team Focus on Enhancements SME activities (testing, training, issue resolution) User support Benefits Focus 2. Training recommendations 3. Last minute filing issue 4. Governance and IBC process matters 5. Interfacing system issues (Ministry, Vendors)

B. IBC 04/05 Priorities (con’t) Prioritisation/ review is ongoing, but draft priority listings available from your IBC representative or the IRT

C. PA Work Cycle Originated as one of several initiatives to help reduce occurrence of “last minute filing” by operators. Issue is impact on other operators that need the data Other approaches included Calls between operators Letters to late filers, follow-up by IRT EUB tracking Vendor system discussions (on-going) Company follow-up Will be reviewed in Training Session. This is a recommended approach developed by the IRT/IBC to address an ongoing issue…but it may not apply in all situations