1. Registry Information Session
The Petroleum Registry of Alberta Energizing the flow of information
Registry Information Session
September 21, 2006

2. Agenda Registry Pipeline Splits Initiative
DOE Oil Penalty Shadow Billing
EUB Water Reporting
Did You Know?
Changes to the Registry Allocation OAF & WIO Reports
New “Report” Button on Query Volumetric Screen
TCPL Split and Invoice Changes
New DOE RMF2 Report
Changes to the Ministry Invoices & Statements area
DOE Report Package Name Changes
Strong Passwords
Questions

3. 1. Registry Pipeline Splits Initiative

4. 1. Topics Registry Pipeline Splits: Backgrounder
Introducing: “Full” and “Lite” Registry Splits
Overview of “Current”, “Full” and “Lite” Approaches
Project Status and Benefits
Non-participating Pipeline Option
Next Steps

5. 1a. Registry Pipeline Splits: Backgrounder
Pipeline splits is the process where operators report to Pipelines, Owners, Shippers and Purchasers their share of sales volumes delivered to the pipeline each month.
The Registry splits process was developed and in place at Registry go-live October 2002, but full implementation was deferred.
Industry currently uses Registry split capability for:
APMC reporting (mandated)
Partner Reporting (optional)
IBC has ranked extended Registry splits as a high priority initiative for many years.

6. 1a. Registry Pipeline Splits: Backgrounder
In discussions with pipeline companies, it is clear that two models for Registry split reporting are required: Full and Lite Participation Models.
There are benefits to loading pipeline splits to the Registry, even for “Non-participating” pipelines.
The IBC, RAC, RSC, CAPP and SEPAC have endorsed an initiative to facilitate “Full”, “Lite” and “Non” Participation models in the Registry.
A project is currently underway to make required changes to the Registry.
Communication plans are in place to assure all stakeholders are ready for the change.

7. 1b. Introducing: “Full” and “Lite” Registry Splits
“Full” Approach
Pipelines will provide Estimated Splits and receive Operator-prepared Splits exclusively through the Registry.
The Registry will provide Splits results to Shippers, Owners, and Purchasers at the appropriate level of detail (e.g. total, or at a well level).

8. 1b. Introducing: “Full” and “Lite” Registry Splits
“Lite” Approach
The pipeline will communicate Estimated Splits and receive Operator prepared Splits outside the Registry using existing pipeline processes…plus standardized “Registry-like” (XML, CSV) batch uploads and downloads.
Operators will upload “confirmed” split results to the Registry. The Registry will make Splits results available to Shippers, Owners, and Purchasers at the appropriate level of detail (e.g. total, or at a well level).

9. 1c(i). Current Pipeline Splits Process
Delivering
Facility
Operator 6
Registry 5
WIO’s 3 2 4 1
Purchasers
Pipeline or
Terminal
Operator 7
Shippers

10. 1c(i). Current Pipeline Splits Process
The Pipeline or terminal operator reports volumes to be split, expected shippers and estimates and forecasted split volumes via fax to the Delivering facility operator (or CSO).
The Delivering facility operator calculates the pipeline split and reports the volumes for each shipper back to the pipeline or terminal operator via fax (Part A of split file).
The Delivering facility operator reports to each shipper their share of the split volume. (subset of Part A of split file).
The Delivering facility operator reports to each purchaser their share of the split volume. (subset of Part A & part B of split file).

11. 1c(i). Current Pipeline Splits Process
5. The Delivering facility operator reports to each owner their share of the split volume at the well/stream level. (subset of Part A & part B of split file).
6. The Delivering facility operator reports to the Registry the APMC (shipper) share of the split volume to the Registry. Only applicable for Oil.
7. The pipeline or terminal operator reports to each shipper their share of the split volume as reported to them by the delivering operator.
* The pipeline split data reported by Industry can be broken into two parts:
Part A – Details the volumes for each shipper.
Part B – Details the volumes under each shipper for each owner, purchaser, and lists the applicable well/stream IDs.

12. 1c(ii). “Full” Pipeline Splits Process
Delivering
Facility
Operator 3
WIO’s 2 4d
Registry 4c
Purchasers
Pipeline or
Terminal
Operator 1 4a 4b
Shippers

13. 1c(ii). “Full” Pipeline Splits Process
The Pipeline or terminal operator reports volumes to be split, expected shippers and estimates and forecasted split volumes to the Registry.
The Delivering facility operator (or CSO) retrieves the pipeline split data from the Registry.
The Delivering facility operator calculates the pipeline split and reports the volumes for each shipper, owner, purchaser and well/stream ID information (Part A & B of split file) to the Registry.

14. 1c(ii). “Full” Pipeline Splits Process
4. The Registry creates reports for:
the pipeline or terminal operator
the shippers including the APMC
the purchasers
the owners
* The pipeline split data reported by Industry can be broken into two parts:
Part A – Details the volumes for each shipper.
Part B – Details the volumes under each shipper for each owner, purchaser, and lists the applicable well/stream IDs.

15. 1c(iii). “Lite” Pipeline Splits Process
Delivering
Facility
Operator
WIO’s 4 5c 1 2 3
Registry 5b
Purchasers
Pipeline or
Terminal
Operator 5a
Shippers 6

16. 1c(iii). “Lite” Pipeline Splits Process
The Pipeline or terminal operator reports volumes to be split, expected shippers and estimates and forecasted split volumes to the Delivering facility operator (or CSO).
The Delivering facility operator calculates the pipeline split and reports the split volumes to the Pipeline or terminal operator. Includes the shipper level details only (Part A of split file).
The Pipeline or terminal operator confirms the split is correct and supplies a confirmation number to the Delivering facility operator.
The Delivering facility operator reports the pipeline split data to the Registry including the confirmation number. Includes all details regarding shippers, owners, purchasers and well/stream Ids (Part A & B of split file).

17. 1c(iii). “Lite” Pipeline Splits Process
5. The Registry creates reports for:
the shippers including the APMC
the purchasers
the owners
6. The pipeline or terminal operator reports to each shipper their share of the split volume as reported to them by the delivering operator.
* The pipeline split data reported by Industry can be broken into two parts:
Part A – Details the volumes for each shipper.
Part B – Details the volumes under each shipper for each owner, purchaser, and lists the applicable well/stream IDs.

18. 1d. Project Status and Benefits
Current Status:
Registry pipeline splits will be implemented on a pipeline-by-pipeline basis over time.
Pembina intends to use the “Full” Registry Splits approach, exclusively, for all their pipelines.
A smaller Pembina pipeline will be used for a “pilot project”, targeted for March/April 2007 implementation.
TCPL to utilize “Lite” Registry approach (subject to review with TTFP Committee).
Implementation timing is subject to confirmation, but is expected to be in place before the end of 2007.

19. 1d. Project Status and Benefits
Current Status:
ATCO has indicated their strategic intent to use the “Lite” Registry approach.
Other pipelines have expressed interest and support for Registry splits. The IRT will work with any pipeline interested in exploring these Registry options. Support and encouragement from the pipeline customers will accelerate the adoption of the Registry approach and help to standardize this business process across Industry.

20. 1d. Project Status and Benefits
Project Benefits:
Standardized processes to electronically upload splits (to the pipeline or to the Registry) from users’ PA vendor systems or spreadsheets (versus keying and faxing).
Reduced partner reporting distribution costs (“It’s in the Registry”).
Access to data in electronic format.

21. 1d. Project Status and Benefits
Project Benefits:
Reduced data chasing.
Reduced time spent keying or writing out split data.
Reduced time identifying and correcting errors due to re-keying/rewriting mistakes.
Industry can confirm that “ROYALTY” reported in volumetrics and APMC pipeline split volumes are reconciled.

22. 1e. Non-participating Pipeline Option
A number of companies have for some time uploaded all pipeline split information (oil and gas) to the Registry for partner reporting purposes.
While the Pipeline Split Adjustment project will greatly facilitate this process, a number of vendor systems are already set up to accommodate this activity…and the Registry can accept .CSV uploads as well.
You may want to consider loading splits now to get a head start on communicating splits to partners through the Registry.

23. 1f. Next Steps
CAPP and SEPAC executive committees have endorsed this initiative. Registry change costs will be borne by Industry through a draw on past IRT surpluses and a voluntary billing.
A pipeline splits billing will be included as part of an overall Industry (IRT) billing to producers later in the Fall.
The Registry team and Fujitsu are well advanced in the development process, and are on-budget, on-time for the March 07 completion target.
The IRT will continue to work with PA system vendors to encourage and support their full participation.
Communication plans are in place to assure all stakeholders are aware and ready for the change.
The Registry Training System will be updated to reflect these changes.

24. 2. DOE Oil Penalty Shadow Billing

25. 2. DOE Oil Penalty Shadow Billing
Background
Alberta Energy implemented new Petroleum Marketing Regulation on July 11, 2006.
No change to existing oil royalty delivery process and reporting requirements.
Regulation does include provisions for non-compliance penalties and interest on unpaid invoices.
Several Information sessions have been held, additional sessions to follow.

26. 2. DOE Oil Penalty Shadow Billing
Background
Non-Compliance penalty shadow billing commenced with the July 2006 production period and will continue for six months.
Shadow billing reports are available in the Registry – Ministry Invoices and Statements area.
Dates on when shadow billing reports are available is being added to the monthly Registry reporting calendar.

27. 2. DOE Oil Penalty Shadow Billing
Penalty Type Summary
Reporting type penalties:
Late/Non-reporting of current month Crown royalty splits
Inaccurate reporting of current month Crown royalty splits
Failure-to-submit amended records for previously overdelivered volumes
Over/Under delivery as compared to DOE Oil royalty calculation.

28. 2. DOE Oil Penalty Shadow Billing
Benchmarking – Overall Statistics
August Reporting - $168,123.69
Late/Non-reporting - $26,000
Inaccurate reporting - $13,100
Under/Over delivery - $129,023.69
Failure to Amend – Not applicable for August reporting
Initiative - Comparative penalty ratios have been distributed to Registry Change Leaders, contact Registry Service Desk.

29. 0.00
0.50
1.00
1.50
2.00
2.50 1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96
101
106
111
116
121
126
131
136
141
146
151
156
161
166
171
176
Company
Average # of Penalties per Operated Facility
Based on Shadow Billing Charges for the August 2006 Reporting Period
Penalty Types included:
- Late/Non-reporting of current month royalty splits
- Inaccurate current month royalty split reporting
- Over/Under delivery as compared to DOE royalty calculation
Does not include Penalties for Failure-to-Amend Over-deliveries (not applicable)

30. 2. DOE Oil Penalty Shadow Billing
Clarification Points
Failure-to-submit overdelivery amendment penalties not applicable until October.
First request for amendments was communicated at the end of August via Reconciliation report
With a (approx) 60 day deadline, no amendment deadlines are reached until the end of October
Current Benchmarking statistics, as a result, do not include this penalty type

31. 2. DOE Oil Penalty Shadow Billing
Clarification Points
Shadow Billing Penalty reports are available at two separate points in the monthly cycle.
Due to timing of the availability of information.
Reporting type penalties – available upon the completion of Crown split verification process
Generally around the 20th of each month
Delivery type penalties – available upon receipt of the DOE royalty calculation
Generally at the end of each month

32. 2. DOE Oil Penalty Shadow Billing
Clarification Points
Overdelivery amendment penalties are unrelated to initial over delivery penalty.
Once overdelivery occurs, it cannot be “reversed”, only penalty liability can be questioned via an appeal
Occurrence of initial overdelivery also results in a request for an amendment to trigger financial settlement
If applicable deadline passes (approx 60 days), a failure-to-amend penalty is charged

33. 2. DOE Oil Penalty Shadow Billing
Clarification Points
Overdelivery claim processing where original reported delivery volume did not match Crown Shipper’s Balance
PRA - Edit TAOC functionality updated to provide a warning rather than error message when the Claim volume plus Overdelivery is greater or less than the APMC volume
Claim volume should always be adjusted to equal DOE royalty calculation
Special circumstances, contact DOE

34. 2. DOE Oil Penalty Shadow Billing
Clarification Points
Error in previous communication of Over/Under delivery penalty maximum.
Incorrectly used a maximum penalty of $5,000 rather than $10,000 per BA monthly
This impacted only five BAs in the first month of shadow billing
Updated guidelines have been posted and revised Information session presentation distributed

35. 2. DOE Oil Penalty Shadow Billing
Penalty Appeals
General list of appealable items were agreed to with Industry during Consultation
Underlying appeals principle for over/under delivery penalties established:
If a royalty variable has changed since last communicated by the DOE
Reporting type penalty appeals will generally be due to system deficiencies or Acts of God (Waivers)

36. 2. DOE Oil Penalty Shadow Billing
Penalty Appeals
Specific forms used and procedure for submission are under development.
Industry will be consulted during process development.
“Decision tree” type document will be developed for Industry use for determining whether a cause is appealable.
An additional round of Information/Training sessions will be offered.

37. 2. DOE Oil Penalty Shadow Billing
Upcoming Training Session(s)
September 26th, 1:30 – 3:00 pm
AMEC Place, 801, 6th Ave SW
Contact David Creig for registration at: (403) or
Additional Resources
Petroleum Marketing Guidelines

38. 3. EUB Water Reporting

39. 3. Topics Background Daily Operations & Reporting
Volumetric Reporting Deficiencies
We Need to Solve the Problem
Water Balance/Water Management
Water for Life
Water Management: Timeline
Water Management: Summary

40. 3a. Background Why Water …. We Need to Manage our Water resources now.
Demand for water (Industrial, Residential, Agriculture, etc) continues to increase.
Alberta Environment is reassessing allocation policy; aligning water use with allocations. i.e. Oil Field Injection use is less then allocation.
Unconventional Gas Production (CBM) impacting ground water management because of potential for fresh water production or contamination.

41. 3b. Daily Operations & Reporting
Creating new subtype to track Brine production reporting
New battery subtype of 903 – Brine Production
Expected implementation date: Dec 2006
Allows the reporting of Brine
Brine production for commercial use
Benefit to DOE Brine audit
Today business rules do not exist to allow a Brine well to be linked to a facility; therefore volumetrics cannot be reported.
No impact to most users

42. 3c. Volumetric Reporting Deficiencies
EUB has always monitored water reporting.
The main source of your water reporting errors is the EUB noncompliance report which is found in the Registry inbox.
The error codes are:
VME0015 – Metering difference is greater then 5% and less then 20%
VME0020 – Metering difference is greater then 20%
The following graphs show an increase in the error count.
Note: The graphs show the error count and volumetric values for complete production years 2003 to 2005 and partial values for the current year ending July 2006.

43. 3c. Volumetric Reporting Deficiencies
Water Balance Number of Errors are Increasing

44. 3c. Volumetric Reporting Deficiencies
Water Balance Volume Differences are Increasing
I.e. Metering difference – Receipts & Dispositions

45. 3d. We Need to Solve the Problem
Every year
5 Million cubic meters (5 Billion litres) of water are accounted for as metering difference!
Count of errors is increasing year after year.
For water errors
Check the Registry inbox for your EUB noncompliance report
Query Volumetric Submission Screen
Summary View will display noncompliance errors
Two possible solutions:
No Process Changes if the error count is lowered.
Possible Enforcement Process Path.
In consultation with Industry

46. 3e. Water Balance Overview
New Directive resulting from Industry activity
Water Balance Directive
Draft Q4, 2006
Final Water Directive released after Industry feedback
Final Water Directive date is yet to be determined
No Directive number yet assigned
Will Replace Bulletin dated March 28, 2006: Water Recycle, Reporting, and Balancing Information for In Situ Thermal Schemes.
Draft Directive will have an impact on daily operations in the following areas:
New Business Rules
Regulatory Changes

47. 3f. Water for Life
Water for Life is a provincial water strategy initiative.
Safe drinking water
Healthy aquatic ecosystems
Reliable quality systems for sustainable economy
Future Environment– life cycle management.
Impact: Track the fresh water related to Oilfield injection, CBM, etc. Will effect future reporting requirements.
Future information check

48. 3g. Water Management: Timeline
Phased approach
Daily Operations & Reporting
Ongoing
Water Balance
Delivery of New Business Rules
Water for Life
Overarching Strategy

49. 3h. Water Management: Summary
Short Term
Improve reporting method by implementing new facility subtype. Due Dec 2006
Draft Water Directive due Q4 2006
Medium Term
Final Water Directive based on Industry input
Determine how to manage the high volumetric reporting error count
Long Term
Water for Life – Ability to better track / manage Water Resources

50. 4. Did You Know? Changes to the Registry Allocation OAF & WIO Reports
New “Report” Button on Query Volumetric Screen
TCPL Split and Invoice Changes
New DOE RMF2 Report
Changes to the Ministry Invoices & Statement area
DOE Report Package Name Changes
Strong Passwords

51. 4a. Changes to the Registry Allocation OAF & WIO Reports
Allocation OAF Report:
Changes introduced September 7, 2006.
This is now an Operator Only report.
Only the operator who submitted the allocation can receive results when requesting the OAF report.
The ability to select owners has been removed.
All Owners will be returned for each report request. Removing the owner selection will impact any existing CSV saved report parameters.

52. 4a. Changes to the Registry Allocation OAF & WIO Reports
Allocation WIO Report:
Changes introduced September 7, 2006.
The WIO report has been enhanced to add the submitted volume and energy information.
This is in addition to the calculated volume and energy values that was already available.
The WIO report will continue to be exclusively for allocated owner information for non-operated and/or operated properties.

53. 4b. New “Report” Button on Query Volumetric Screen
The query volumetric screen, now contains a new “Report” button that allows users to request a daytime running report for a single facility.
The new button is available on the following query volumetric screens:
Summary View
Facility Activity View
Well View
Pro-ration Factor View
The results from this request will always be a PDF Volumetric Facility Activity Report, which will contain all data for that facility, production month and amendment number.

54. 4c. TCPL Split and Invoice Changes
As discussed at the Tolls, Tariffs, Facilities and Procedures Committee, and the Industry Benefits Committee, TCPL will align their “Commodity” and “Demand” invoice timing. To make this happen:
Industry agreed to provide split (RAF) information earlier on the deadline day, and
TCPL changed their internal processes to process splits and generate invoices.

55. 4c. TCPL Split and Invoice Changes
What is going to change?
When the invoice is available:
Old: TC will render paper invoice on or before the 20th.
New: TC will post the invoice on or before the 21st.
B. The RAF deadlines* will be earlier
RAF Deadlines
OLD
NEW
Faxed
2:00 pm
12:00 noon
Electronic
9:00 pm
4:00 pm
* Firm deadlines.

56. 4d. New DOE RMF2 Report
New report (“RMF2 Listing”) issued by the DOE in August 2006 in response to RMF2 Subcommittee Request.
Sent to the “Ministry Invoices and Statements” area of the Registry.
Displays all RMF2’s (including terminated) which may be used for royalty calculations.
Includes “Last Used” field to determine ‘usefulness’ of the respective RMF2.
One-time initiative for all BA’s, however DOE will accept company-specific requests – for details contact your Gas Royalty Client Services Portfolio team representative.

57. 4e. Changes to the Ministry Invoices & Statement area
Changes will occur over the next few months to improve clarity and ease of use.
Changes have begun as the “Manage Ministry Reporting” screen has been revamped:
The “Date Processed” column has been removed. This information can be found in the respective Ministry report and is therefore not needed on the screen.
Under the “View”, “Download” and “Download Zipped” column, Kbytes will now be listed as KB.

58. 4e. Changes to the Ministry Invoices & Statement area
Changes being made to the Ministry Invoice & Statements by the DOE include:  
Preface package names with – “DOE Oil”, “DOE Gas”, etc.
Ensure all PDF/TXT/CSV files appear on one line, with a drop down option.
Achieve consistency in the use of capital and lower case letters in report names.
Clarify report names for ease of use.

59. 4f. DOE Report Package Name Changes
Also, there will be several Package/Report name changes:
Current Name
Revised Name
Statement of Royalty Adjustments and Transportation Allowances
Detail of Royalty Adjustments and Transportation Allowances
General Invoice/Transfer
Invoice/Direct Deposit Notice
Royalty Confirmation Report
Royalty Delivery Confirmation Report
R(L)0000##### - Application status for oil royalty programs- YYYYMMDD
Well ID - Program Status - YYYYMMDD
Oil Royalty Program Reports - YYYYMMDD
Royalty Program Reports - YYYYMMDD
Scheme Level EOR Relief Details for Current Month YYYY-MM
EOR Relief Well Details - YYYY-MM
Summary - Current Month EOR Relief for YYYY-MM
EOR Relief by Facility Summary - YYYY-MM
Summary for Current Processing Period
Corporate Summary - Prod Mth YYYY-MM and Prior
Current Month Summary for YYYY-MM
Facility Summary - Prod Mth YYYY-MM and Prior
Summary for Current Processing Month
Well Details - Prod Mth YYYY-MM and Prior

60. 4g. Strong Passwords To be introduced in 4th Quarter of 2006.
Designed to enhance Registry security.
Passwords must be at six characters long and include 3 of these four elements:
Lower case letters
Upper case letters
Numbers
Special characters

61. 4g. Strong Passwords
Users have always had the ability to use strong passwords and their use has been recommended. 
This change will now make Strong Password use mandatory and will impact all Registry users.
After implementation, users will need to enter a strong password the next time they are prompted to change their password.  This change does not immediately affect existing passwords.
More communication will follow as the implementation date approaches.

62. 5. Questions?