1. Valuation and ONRR Reporting of Vented and Flared Volumes
Lee-Ann Martin, Program Manager, PRV
Amy Lunt, Asset Valuation

2. 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.

3. Learning Objective
The attendee will be provided answers to industry questions on reporting vented and flared volumes.

4. Venting & Flaring Questions
Question: If a vent/flare stream has several components (some royalty bearing and some non-royalty bearing), will the historically non-royalty bearing products (i.e., Nitrogen and H2S) remain non-royalty bearing?
Answer: The capture target is based on a volume basis. If the capture target percent is not met and some of the flared/vented volume is determined to be royalty bearing, the value of the gas is determined on a Btu-adjusted basis. 3 3

5. Venting & Flaring Questions
Question: Will royalty-free venting and flaring be required to be reported on both the OGOR and 2014s?
Answer: Reporting of royalty-free venting and flaring volumes is required on the OGOR. It is not required on the ONRR-2014. 3 3

6. Venting & Flaring Questions
Question: Will there be new separate transaction codes for royalty-bearing and royalty-free vented/flared volumes?
Answer: Yes. There will be new Disposition Codes (OGOR-B reporting) for royalty-bearing and royalty-free vented/flared volumes. 3 3

7. New Venting & Flaring OGOR Disposition Codes (DCs)
DC 33 – Flared Gas – Royalty Due
DC 63 – Vented Gas – Royalty Due
DC 64 – Used on L/A – Native Production Only – Non-combusted Volumes
DC 65 – Royalty-free Flaring & Venting During Well Completion & Production Testing
DC 66 – Royalty-free Flaring & Venting From Storage Vessels
DC 67 – Royalty-free Flaring & Venting From Liquids Unloading/Well Maintenance Operations
Note: The DC 20 description will be changed from “Used on L/A – Native Production Only” to “Used on L/A – Native Production Only – Combusted Volumes” 3 3

8. Venting & Flaring Questions
Question: How will the royalty payments under the new Waste Prevention, Production Subject to Royalties, and Resource Conservation rule (aka, venting and flaring rule) be applied to non-marketable gas streams?
Answer: The capture target is based on a volume basis. If the capture target percent is not met and some of the flared/vented volume is determined to be royalty bearing, the value of the gas is determined on a Btu-adjusted basis. 3 3

9. Venting & Flaring Questions
Question: How do you value flared/vented gas for royalty purposes for gas produced in an index zone, and gas produced in an area that is not in an index zone?
Answer: If your flared or vented gas is deemed royalty bearing by BLM or BSEE, value is:
Determined under the index-based option
If a valid index price point is not available, value is determined under the default provision 3 3

10. Tools for Assistance
website Reporting/Paying – Production Reporting
Minerals Production Reporter Handbook is the Handbooks page
Oil and Gas Reporter Training Guide for Form ONRR-4054 (OGOR)
is the Reporter Training page
Production Reporting Contacts
is the OGOR – Oil and Gas Operations Report (Form ONRR-4054) and Error Correction Contacts page
Maintain Your System Access and Contact Information
includes information on completing the EMARF and the ONRR-4444
Production Reporting References
includes How to Resolve Errors documents, OGOR Video Training, Offshore FMP information, Reporting Codes, Reporter Letters, and Regulation links

11. Program Manager, Production Reporting and Verification
Contact Us:
Lee-Ann Martin
Program Manager, Production Reporting and Verification
(303) 11