1. Petroleum Accountants Society of Oklahoma February 12, 2015
Production Reporting and Verification Presented by: Kimbra Davis Program Manager for Production Reporting and Verification
Petroleum Accountants Society of Oklahoma
February 12, 2015
Industry Compliance
Accurate Revenues & Data
Professionalism & Integrity

2. Production Reporting and Verification
Program Manager
Kimbra Davis
Lydia Barder
Program Support
Manager
Louise Williams
Onshore Production
Reporting Manager
Sonny Betancourt
Onshore Team 1 Supervisor
Luke Lundmark
Onshore Team 2 Supervisor
Susan Long
Offshore Production
Vicky Stafford
Offshore Team 1 Supervisor
Vacant
Offshore Team 2 Supervisor
Ken Stamper
Production Inspection and Verification Manager

3. Topics Production Reporting Requirements System Considerations
Production Inspection and Verification Initiatives

4. Production Reporting Requirements
If you operate a Federal or Indian oil and gas lease or agreement, you must file an OGOR each month for each active lease or agreement when there are wells that are not permanently plugged or abandoned or when inventory exists for the property (paraphrased from 30 CFR § )
Reports are due electronically to ONRR approximately 45 days after the production month ends
— January OGOR is due March 15th
The operator does not have to report a well in drilling status unless there is associated test production 3 3

5. Surface Location Considerations

6. Venting and Flaring Requirements
Effective production month July 2010:
Flared oil-well gas = disposition code 21
Flared gas-well gas = disposition code 22
Vented oil-well gas = disposition code 61
Vented gas-well gas = disposition code 62
All of the production reporting Appendices can be found at Disposition/Adjustment Codes are in Appendix I
May 7, 2010, Dear Reporter Letter on reporting requirements for flaring and venting is at

7. Oil Volumes Reported on the OGOR
Royalty due on the volume removed or sold from the lease at the BLM or BSEE approved point of measurement
Reported in barrels of clean oil of 42 standard U.S. gallons at 60 °F
Corrected for Basic Sediment and Water (BS&W) and other impurities
Report American Petroleum Institute (API) oil gravities in accordance with standard industry procedures after correction to 60 °F
In some cases, you may be able to take a transportation allowance on actual or theoretical losses between the approved measurement point and the sales point
Contact ONRR’s Asset Valuation Office at guidance
Transportation losses
Approved measurement point
Sales point into refinery
Volume reported on OGOR and 2014

8. Enforcement Process: OTRs and NONCs

9. System Considerations
Line Count Threshold
Database Synchronization
Top Fatal Reporting Errors
Effective Date Challenges

10. Line Count Threshold Oil and Gas LLC
K8500
Oil and Gas LLC
5/2013 Manning Unit
Up to 5,000 L/A - Prod Month Combination Lines
Up to 5,000 lines for each Part A
Up to 5,000 lines for each Part B
Up to 5,000 lines for each Part C

11. Database Synchronization

12. Top Fatal Error for FY
Issue - OGORs not submitted to eCommerce in chronological order
OGORs reject with edit 11030, “Beginning inventory total must match ending inventory total from prior report period”
Because of the lack of date order staging in the PeopleSoft (PS) OGOR validation process, ONRR has a large number of rejected OGORs due to edit 11030
In 2014, we implemented a nightly validation process. Sometimes multiple validation runs are required to eliminate the edit for multiple months of OGOR submissions.
System Change Request to be implemented in 2015 to permanently resolve the problem

13. Other OGOR Fatal Errors for FY 2014

14. ONRR System Well Eff Date
Effective Date Challenges
Updates of well reference information and OGOR acceptance can be affected by dates
ONRR System Well Eff Date
ONRR Well Status
OGOR Production Date
OGOR Status
OGOR Result
Reason
12/11/11
DRG
12/31/11
POW
Accepted
Well is in the system for the production month being reported and OGORs are accepted with any status.
11/30/11
OSI
Not Accepted
Well is in the system with a later effective date than the production month being reported.
Not in ONRR System
PGW
Cannot accept a production report with wells not entered into the ONRR system through BLM or BSEE data transfer.

15. Effective Date Challenges
Reasons and solutions for OGORs being rejected because of well information and dates:
BLM or BSEE has not approved the sundry
Update of well information in BLM system or BSEE system is delayed
Operator has not submitted sundry paperwork to BLM or BSEE
If BLM or BSEE has completed and approved the sundry request, including identifying the Lease/Agreement on which the operator is trying to report, the operator can send the approved sundry to their PRV error correction contact for manual input into our system to expedite the acceptance of OGORs.

16. Production Inspection and Verification Initiatives
Production Verification Reviews
Measurement Inspection Team Support

17. Production Verification Reviews
OGOR C investigation/resolution of adjustments (Disposition Codes 42, 44, 45, 46, and 47)
Validation of accurate accounting for abnormal operations
Test Volumes
Line Fill
Pigging
Analysis of offshore allocation systems
Ongoing technology assessment – improve measurement accuracy and reporting
Risk Model development – strategy to effectively, efficiently ensure accurate production reporting for high risk properties

18. Measurement Inspection Team Support
ONRR funded Measurement Inspection group began inspections in 2013
3 BSEE measurement inspectors in Lafayette, Louisiana
Issued 600 Incidents of Non-compliance (INCs) issued in FY 2014
2nd BSEE measurement inspection team planned
Future efforts include
Joint inspections with BSEE inspectors/ONRR engineers
Characterization/analysis of INCs
Operator Training/Seminars (collaborating with BSEE)
Similar cooperative agreement with BLM to establish agile measurement inspection team under development

19. 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

20. Program Manager, Production Reporting and Verification
Contact Us:
Kimbra Davis
Program Manager, Production Reporting and Verification
(303)
Industry Compliance
Accurate Revenues & Data
Professionalism & Integrity