Page 1 of 36 Respective of PNG Tenure Regulation Sections 19 to 23; when Crown land is leased without a producing well and is being drained by a freehold well, the department does not drill to prevent drainage. The department takes action through the offset process to prevent or obtain compensation for the drainage. This prevents loss of revenue to the people of Alberta. An offset notice will be served to the Crown lessee requiring that compensation be paid or a well be placed on production in the Crown spacing unit from the freehold offset zone(s), creating competitive drainage. The lessee can also surrender their leased petroleum and natural gas rights. Welcome To the ETS - Offset Notice Response Training Course

Page 2 of 36 DateRevisions TypePage Number September 5, 2014Initial CreationAll October 3, 2014Update5 Revisions

Page 3 of 36 In this module, you will learn how to: Retrieve Documents, which include:  Offset Notice Letters  Statements of Account  Other Letters Complete an Offset Notice Response Form Delete an Offset Notice Response Form Submit an Offset Notice Response Form Introduction

Page 4 of 36 Login to ETS 1. Login to ETS with your user name and Password 2. Expand Offset

Page 5 of 36 Notification When the Department sends documentation to the clients ETS account, an notification is sent to the Administrator or to the user who is assigned the role of viewer for the form types Offset Response Form, or Offset Response Authorization. The Offset Statement of Account will be delivered to the request status on the first business day of every month. However, there is no notification for this form type. Sample of for documents sent to Request Status Sample of for documents sent to Work in Progress

Page 6 of 36 Request Status 1. Select the Request Status tree node The following Documents will be sent by the Department of Energy and can be found in the Request Status: Offset Notice Letters Statements of Account Other letters not related to a response form The offset notice letters and other letters contain pertinent information as to specific due dates for requests. For example: the Offset Notice letter must be responded to within six (6) months of the date of the letter. Letters requesting additional data must be responded to within 30 days of the date of the letter. Letters that relate to a response form are found in the Work In Progress screen.

Page 7 of 36 Request Status – Search 1. Enter the search criteria 2. Click Retrieve If you leave the drop down criteria blank, all records will be returned. Search results

Page 8 of 36 Request Status - Select Document for Viewing Double click on the document you wish to open. The document will open in.PDF format Tip: To maintain your records, download and save a copy in your personal or internal directory. The documents here will be visible only for the number of days as set in your Preferences.

Page 9 of 36 Request Status - Functionality Retrieve: will retrieve all records based on the entered search criteria. Select All: will check the box in the “Sel” column of all returned records. This will allow the user to select for viewing or deletion. Unselect All: will clear all check boxes from the “Sel” column. (Un)Delete: will mark the selected records for deletion, (the item will be in red font until it is deleted from the system). A daily automated process will delete the indicated records. Clicking the (Un)Delete button will remove the indicator for deletion. Pickup: will open all selected records in a zip format. This is a good opportunity to save your records in your personal directory.

Page 10 of 36 Sample – Offset Notice Letter

Page 11 of 36 Sample – Statement of Account

Page 12 of 36 Sample –Billing Sheets

Page 13 of 36 Other Letters – Work in Progress 1. Select the Work In Progress tree node Other letters from the department requesting additional data must be responded to within 30 days of the date of the letter. These letters are found in the Work In Progress screen and the letter is attached to the specific ETS Request. Report: is the ETS report with the details of the Offset Notice Response Form based on the last save. Denial: are letters from the Department requesting further information to support the clients response. Final: the Department has made the final decision to either approve or deny the clients response.

Page 14 of 36 Admin tab 2. Admin screen displays 1. Select the Response Form tree node When an Offset Notice Letter has been served an Offset Notice Response Form must be submitted to the Department within 6 months of the Offset Notice Letter date.

Page 15 of 36 Admin tab - continued When an Offset Notice Response Form is initiated by the user the system will create a report which captures all the details of the form based on the last save. Double click on this link and the report will open in.PDF format. On the first save of the form, an ETS Request number will generate and display in the top of the screen.

Page 16 of 36 Admin tab - continued 4. Enter Contact Information 1. Enter Administration Information The Admin tab must be completed for all Offset Notice Response Forms. Other tabs that will be displayed are dependent on the Offset Notice Response Type. 3. Select the correct Response Type Once saved, the Offset Notice Response Form has been created and is in the status of “Work In Progress”. You may continue to update and save this form until it is submitted. 5. Click Save The Agreement Number and Unique Freehold Well ID will auto populate based on the Offset Notice Number. 2. Enter the Offset Notice Number

Page 17 of 36 Admin tab – Add Technical Contact 1. Select Add Technical Contact(s) 2. Enter the Technical Contact information The Technical Contact is an optional field. If it is blank there will be a warning message, but it will not stop the submission of the form

Page 18 of 36 Admin tab - Continued There may be instances where additional data is required to support the Response Type. The system will automatically check either “No Data to Follow” or “Data being sent by courier or mail”, based on the selected Response Type. You may also indicate for the Department to return the Seismic Lines and/or to Refer to the data previously submitted on the date which you will enter on the form

Page 19 of 36 Response Types The Offset Notice Response Types are: Pay – the client chooses to pay the offset compensation. Surrender – the client chooses to surrender all or a portion of the agreement. Well on Production – the crown well is producing. Review – the client requests for the Department to review and reconsider the Offset Notice. Extension – the client is requesting for an extension to the Offset Notice date. Reinstatement – the client did not respond to the original offset notice and their mineral rights were surrendered by the Department. The client is requesting for the agreement to be reinstated.

Page 20 of 36 Pay The Pay response type does not require additional information. Once the Admin tab is completed this Offset Notice Response Form can be submitted

Page 21 of 36 Surrender Enter data for the Surrender response type If you select “exactly as outlined in the offset notice” or “the referenced agreement” there is no further data required

Page 22 of 36 Surrender – Portion If you select “a portion of the referenced agreement” you must enter the land portion of the agreement to surrender and the zone. 2. Select the Zone 3. Click Select 1. To select the Zone click on the “ “ 78725

Page 23 of 36 Surrender – Add Lands If you select “a portion of the referenced agreement” you must enter the land portion of the agreement to surrender. 2. Click “Add Land” 1. Enter land information To remove a land description, click on the “ “ on the row to be removed

Page 24 of 36 Surrender – Add Zone Exceptions You can add more than one zone in the exceptions. To remove a zone from the exceptions, select the zone to be removed and click on Remove Zone. 2. Click Add Zone 3. Select the Zone 4. Click Select 1. Enter any exceptions for the Zones

Page 25 of 36 Well On Production 1. Enter the data for the Well on Production response type 2. To select the Zone click on the “ “ 3. Select the Zone 4. Click Select

Page 26 of 36 Well On Production - Continued An Alternate Election is required for this response type. Refer to the Alternate Election page in this training module 78725

Page 27 of 36 Review Enter data for the Review response type Click Browse to select and upload the.PDF file. An Alternate Election is required for this response type. Refer to the Alternate Election page in this training module

Page 28 of 36 Extension Enter data for the Extension response type Click Browse to select and upload the.PDF file. An Alternate Election is required for this response type. Refer to the Alternate Election page in this training module

Page 29 of 36 Reinstatement Enter data for the Reinstatement response type Click Browse to select and upload the.PDF file. The client must either upload a statutory declaration document declaring that the original Offset Notice was not received, or pay the reinstatement fee of $5, The declaration document is a notarized legal document; in these cases the fee may be waived. An Alternate Election is required for this response type. Refer to the Alternate Election page in this training module.

Page 30 of 36 Alternate Election Enter the Alternate Election The Alternate Election tab is required when the selected Response Type is any of the following: Well on Production Review Extension Reinstatement The Alternate Election can only be Pay or Surrender. If you elect to surrender, follow the same steps as detailed for Surrender response type

Page 31 of 36 Delete Response Form 1. Click Delete You may delete the form only when it is at the status of Work In Progress. Once it is deleted the status of the Offset Notice Response form is Client Cancelled. The form cannot be retrieved or revived. You must create another Offset Notice Response Form for the offset.

Page 32 of 36 Submit Response Form 1. Click Submit Once all pertinent information has been entered you can submit the Offset Notice Response Form. The system will perform a validation to ensure all mandatory data has been provided. Upon successful submission, the status is updated to Submitted. Once the form is submitted it cannot be modified or deleted. 2. Click OK

Page 33 of 36 Offset Notice Response Form Lifecycle The Offset Notice Response Form status is Work In Progress from the first save until it is submitted. Once successfully submitted the status is updated to Submitted. When the response is received by the Department there is an internal review process to determine the approval or denial of the Offset Notice Response; during this time the status is updated to Processing. When the review is completed a letter is sent through ETS confirming the acceptance or denial of the offset response and any other notification or request for further information or detailed data. The status of the Offset Notice Form is updated to Completed.

Page 34 of 36 Offset Notice Response Form Statuses The Offset Notice Response Form will have one of the following status: Work in Progress – the user can modify and save the form. Client Cancelled – the user has Deleted the form, it is now read only and cannot be modified. Submitted – the user has Submitted the form, it is now read only and cannot be modified. Processing – the form is submitted, being validated by the Department’s system, and is undergoing the review process. Continued on the next page…

Page 35 of 36 Offset Notice Response Form Statuses - Continued The Offset Notice Response Form will have one of the following status: Completed – the Department’s system has received the form and has completed the review process. The Department’s decision will be communicated through letters which are attached to the Request under Work in Progress. Rejected – the Department’s system has rejected the form due to edit checks, or the submitted Offset Notice Response form has been rescinded by request of the client.

Page 36 of 36 Conclusion Congratulations! You have completed the Offset Notice Response Online Training Course If you have any comments or questions on this training module, please forward them to the following address: