Page 1 of 43 To the Cost Analysis Reporting Enhancement (CARE) Online Training Course In 2009, Alberta Energy required Oil Sands Royalty (OSR) Project operators to provide additional information that will enable the department to improve reporting of Oil Sands activities to Albertans. This training material will discuss what you need to know to submit the CARE reporting workbooks using Alberta Energy's Electronic Transfer System (ETS). All CARE reporting workbook data will be included in the Oil Sands Administrative and Strategic Information System (OASIS) Phase 2. Welcome

Page 2 of 43 DateRevisions TypePage Number November 7, 2011Updated ContentAll September 1, 2012ConversionAll Revisions

Page 3 of 43 ETS Correspondence Course Pre-requisite: In this module, you will learn: CARE Information Background CARE Key Reasons for Reporting CARE Data Requirements CARE Workbook Submissions Statement of Approval Forms and Workbooks Amendments File Naming Conventions Filing Deadlines How to submit CARE Reports How to retrieve CARE Reports CARE Resources Introduction

Page 4 of 43 Alberta Energy introduced the Cost Analysis and Reporting Enhancements (CARE) reporting forms in December 2008 which were updated in 2011 to reporting workbooks. CARE reporting is mandatory under the Oil Sands Royalty Regulation Under this legislation, Alberta Energy will apply reporting enforcement provisions to any operator not providing these reports to the Minister as specified. CARE Cost Reporting Workbooks must reconcile to the annual End of Period Statements (EOPS) reporting to Alberta Energy, which are subject to Crown audit. Background

Page 5 of 43 Project Assessment and Tracking Provides Alberta Energy an understanding and assessment of new OSR projects and project amendment applications. Tracks the evolution of approved OSR projects to ensure their implementation is progressing according to the original Project Approval. Royalty Collection and Verification Ensures that oil sands royalties are collected in a timely and accurate manner in accordance with the Oil Sands Royalty Regulations, OSR Guidelines and each OSR Project Approvals descriptions and conditions. Ensures the information claimed on Project revenues, costs and other information are appropriate and verifiable. Policy Development and Forecasting Assists Alberta Energy in assessing effectiveness of the Royalty Regime. Supports policy development, strategic planning and forecasting processes. Key Reasons for Information Reporting

Page 6 of 43 The OSR Operator must provide Revenue Data for: Bitumen/Bitumen Blend Revenue for In-Situ Projects Bitumen Blend Netback Calculation for In-Situ Projects Transportation Costs for In-Situ Projects Diluent Supplied to a Stream for In-Situ Projects Other Oil Sands Products Revenue for Mining and In-Situ Projects Western Canadian Select (WCS) Sales (select operators) The OSR Operator must report to Alberta Energy the: Capital Costs incurred by or on behalf of the lessee or operator of the approved Oil Sands Project. This data is segregated into the following life cycle stages: Initial PNCB Strategic Sustaining Reclamation/Abandonment Operating Costs incurred for the approved Oil Sands Projects (including In-Situ Projects and Mining Projects). Data Reporting Requirements

Page 7 of 43 Annual Volumetric Data at the OSR Project level. All measurements are standardized as reported to the Energy Resources Conservation Board (ERCB) and are identified in ERCB Directive 017 – Measurement Requirements for Upstream Oil and Gas Operations. Annual Operations Data at the OSR Project Level. For example, the number of site employees and emissions data. Oil Sands Deposit Data for Mining Projects and Reservoir Data for In-Situ Projects. Initial and remaining Project areas proven and probable Reserves Data. The calculation of reserves is based on gross reserves prior to royalty determination and is prepared in accordance to recognized reserve evaluation methods, i.e. Canadian Oil & Gas Evaluation Handbook. Information should not be confused or compared to reporting for securities purposes. CARE Project workbook includes reporting on the following…

Page 8 of 43 All workbooks must be submitted electronically in Excel using Alberta Energys Electronic Transfer System (ETS) by the filing deadlines. The ETS is a secure web application portal. The Correspondence in ETS allows Oil Sands Royalty clients to send and receive data through a secure connection. NOTE: As the information contained in the CARE reporting will be used to build the OASIS database, no changes to the CARE form's format are allowed. Workbook Submissions

Page 9 of 43 A Statement of Approval must accompany the submission of the CARE workbooks for each reporting period. The approval of the workbooks must be approved by the operators Chief Financial Officer or another senior officer on behalf of the operator. Note: The senior officer of the operator must be approved in advance by the Minister. A Statement of Approval: Is a separate document, such as a letter, accompanying the CARE submission, providing that such a letter clearly references the report to which it relates. Clearly indicates the name of the individual approving the report. Includes a scanned signature page with the electronic submission. Statement of Approval

Page 10 of 43 All CARE reporting forms and workbooks are available on Alberta Energy's Oil Sands Operations website Note: Scroll down the page to Cost Analysis and Reporting Enhancement (CARE) section. See also Appendix C – Cost Analysis and Reporting Enhancement (CARE) Forms, and Appendix D – CARE Glossary under the Alberta Oil Sands Royalty Guidelines Appendices. Oil Sands Royalty Guidelines Appendices Forms and Workbooks

Page 11 of 43 CARE Cost and Revenue Workbooks As these workbooks report on a cumulative year to date basis, amendments within a period for previously submitted information must be incorporated in the current periods quarter reporting. Specifically for the CARE Cost workbook, all 4th quarter reporting for a period must reconcile to the OSR/CSR projects End of Period Statements (EOPS). If an amendment is necessary after the period has ended and an EOPS has already been filed, amendments to both the EOPS and the 4th quarter CARE Cost and Revenue workbooks is required. CARE Project Workbook Amendment to project information requires full workbook replacement as soon as changes have been identified by the operator. Amendments

Page 12 of 43 File naming conventions have been developed for all CARE workbook reporting. When submitting an Excel File to Alberta Energy, all CARE workbook reporting must follow the file naming conventions listed in the Alberta Oil Sands Royalty Guidelines Appendix H - Electronic Transfer System (ETS) - File Naming Conventions. _Appendix.pdf. _Appendix.pdf File Naming Convention

Page 13 of 43 Refer to the Alberta Oil Sands Royalty Guidelines Appendix E – CARE Timeline and Timetable for filing deadlines. s/Royalty_Guidelines_Appendix.pdf. s/Royalty_Guidelines_Appendix.pdf Filing Deadlines

Page 14 of 43 Document Link - ETS Setup Form Course Link - ETS Account Setup and Preferences The Electronic Transfer System (ETS) is a secure web application that is used to submit CARE Reporting forms. The link below goes to Alberta Energy's website for access to ETS: You may already have access to ETS however in order to submit CARE reporting forms, you must have permission to the ETS Correspondence Folder. Only Oil Sands Operators will be given access to the ETS Correspondence folder. To request access to ETS from Alberta Energy, complete the ETS Setup Form ensuring that the CARE Form box is selected. The document is provided below. Checkout the course ETS Account Setup and Preferences for more information on how to setup your ETS account. Electronic Transfer System (ETS)

Page 15 of 43 Course Link - ETS Correspondence Use the Send Form screen located in the Correspondence node in ETS to send CARE Report Forms. Ensure the correct information is selected from the: Form Type list Contact list Business Associate list Provide any additional notes required for the submission. Ensure the CARE Report Form naming conventions are followed when the filename is created. Click on the More Information to view how to send CARE Report Forms. Checkout the course ETS Correspondence for more information on the functionality of ETS Correspondence. More Information (Pages 16 to 29) Submit Forms

Page 16 of 43 SF1 Back to Submit Forms

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Page 18 of 43 SF3 Back to Submit Forms

Page 19 of 43 SF4 Back to Submit Forms

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Page 23 of 43 SF8 Back to Submit Forms

Page 24 of 43 SF9 Back to Submit Forms

Page 25 of 43 SF10 Back to Submit Forms

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Page 27 of 43 SF12 Back to Submit Forms

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Page 29 of 43 SF14 Back to Submit Forms

Page 30 of 43 You can use the Request Status screen to review the status of the submitted form and to retrieve information on your correspondence. Request Status

Page 31 of 43 You can use the Request Status screen to retrieve and review the submitted form. Click on the More Information to view how to use Request Status. Retrieve Submitted Forms More Information (Pages 32 to 40)

Page 32 of 43 RSF1 Back to Retrieve Submitted Forms

Page 33 of 43 RSF2 Back to Retrieve Submitted Forms

Page 34 of 43 RSF3 Back to Retrieve Submitted Forms

Page 35 of 43 RSF4 Back to Retrieve Submitted Forms

Page 36 of 43 RSF5 Back to Retrieve Submitted Forms

Page 37 of 43 RSF6 Back to Retrieve Submitted Forms

Page 38 of 43 RSF7 Back to Retrieve Submitted Forms

Page 39 of 43 RSF8 Back to Retrieve Submitted Forms

Page 40 of 43 RSF9 Back to Retrieve Submitted Forms

Page 41 of 43 Oil Sands Royalty Guidelines Oil Sands Royalty Guidelines – Appendices Oil Sands Information Bulletins Subscription to updates to Information Bulletins (scroll down to Information Letters and Bulletins.) CARE Forms and Workbooks (scroll down to Cost Analysis and Reporting Enhancement.) CARE Frequently Asked Questions CARE Training Presentation (dated September 3, 2009) Oil Sands Contacts Resources

Page 42 of 43 In this module you have learned about: CARE Information Background CARE Key Reasons for Reporting CARE Data Requirements CARE Workbook Submissions Statement of Approval Forms and Workbooks Amendments File Naming Conventions Filing Deadlines How to submit CARE Reports How to retrieve CARE Reports CARE Resources Content Review

Page 43 of 43 Congratulations! You have completed the Care Online Training Course If you have any comments or questions on this training course, please forward them to the following address: Concl usion