Alberta Petroleum Registry Information Session

1. The Petroleum Registry of AlbertaEnergizing the flow of information Registry Information Session June 22, 2005

2. Agenda • Registry Update: • Mid-year review of Registry Performance Enhancement Initiatives. • DOE Update: • Gas Cost Allowance (GCA) Project. • Updates on Provisional Assessments. • Oil Development - Proposed Petroleum Marketing Regulation • EUB Update: • Well status Project • Non Compliance Errors and Statistics. • Pipeline Shadow Billing Ends. • Industry Registry Team Update: • IRT/IBC Focus Areas • More details on phasing in Annual Costs Allowance (AC) filings to a Registry-based process (GCA Project). • Did-You-Know? • Questions and Answers

3. Registry Performance Update • Registry performance remains a key focus of the Registry Team. • Registry Performance Subcommittee (RPS) was formed with a specific mandate to not only ensure current performance meets user expectations, but also to forecast how future trends can impact our current capacity, and what solutions exist to mitigate these risks. • RPS contains representatives from all stakeholder groups.

4. Registry Performance – 6 Months in Review • Since January 2005, over 40 Registry Performance tuning initiatives have been implemented. Some examples include: • Technical Changes: • .NET migrations (ongoing) • Windows 2003 and Blade Server Upgrades • Business Changes: • Performance Enhancements to Facility Activity and Ensure Complete* Reports • Well Status Project • EUB Non Compliance Report Changes

5. * Performance Tuning for the Ensure Complete • The Registry team has implemented a number of performance tuning initiatives that have improved turnaround time. • These initiatives included: • Database improvements and tuning. • Default Date Changes • Other “mid-range” solutions are currently being developed and will be implemented shortly.

6. DOE Update Updates on Provisional Assessments. Gas Cost Allowance (GCA) Project. DOE Oil Development – Proposed Petroleum Marketing Regulation

7. Provisional Assessments

8. Gas Cost Allowance (GCA) Project Update • Project remains on schedule. • AC1 design sessions completed, documentation nearing finalization. • AC1 development (Registry and DOE) nearing system test phase. • AC1 Acceptance Testing commences in August, 2005. • AC2-5 design sessions have just commenced. • AC 1 implementation - October 2005; AC2-5 implementation – February, 2006.

9. DOE Oil Development– Proposed Petroleum Marketing Regulation • Per June 8, 2005 letter, implementation of proposed Petroleum Marketing Regulation has been delayed. • Shadow Billing beginning with June 2005 production has been postponed. • Watch for further communication updates from the DOE Oil Development group.

10. EUB Update Well Status Project Closure. Non Compliance Errors & Stats. Pipeline Shadow Billing Ends.

11. Well Status Project • The new well status screens and processes were implemented on May 5, 2005. • Feedback on the changes have been positive. • If you have any concerns or comments please contact the Registry Service Desk. • All concerns/comments will be documented and addressed by the Registry and/or EUB staff responsible for the well status process.

12. EUB Non Compliance Billable Error Types 2005 ** Includes Pipelines

13. 2005 EUB Non Compliance Billable Errors ** Includes Pipelines

14. EUB Non compliance Errors 2004 Average Errors = 279

15. EUB Pipeline Shadow Billing Six month shadow billing period for pipeline reporting, ended May 19, 2005. Pipeline, meter station, and some terminal operators were charged for any outstanding non-compliance fees for any volumetric errors, dating back to October 2002.

16. EUB Pipeline Shadow Billing Deemed to be a success. On the first invoice, there were only three billable pipeline errors. Starting with the May 2005 production month (the June 20th, 2005 filing deadline), only new errors detected will incur a non-compliance fee. These include any current month submissions and amendments to prior months that have been submitted since the previous EUB filing deadline.

17. EUB Pipeline Shadow Billing The EUB will load invoices related to compliance fees for errors, late filings, imbalances, etc., into the Ministry Invoices and Statements area of the Registry to allow industry to view details of the charges. The invoices are generally released the third working day after the EUB Volumetric Data – Deadline. (See the Registry calendar). If you have any questions about this issue, please contact the EUB PA Help Desk at 403-297-8952 or fax them at 403-297-7303.

18. Industry Registry Team Update • IRT/IBC Focus Items. • Allowable Costs: More Details. • Did-You-Know’s. • Ensure Complete Report. -Default Changes. • The timing of Infrastructure Changes to DOE. • Work-in-Progress Reminders. • Training System: Finding what you need to know.

19. IRT/IBC Focus Items • British Columbia • Discussions to continue between the provinces. • Freehold Mineral Tax • DOE/Industry consultation continues towards achieving short-medium term efficiencies. • DOE has provided summary of consensus recommendations (June 20/21). • RMF2 Process • CAPP Accounting Committee reviewing merits of moving this process onto the Registry.

20. IRT/IBC Focus Items • “Current Month Oil Estimator” - Proposed as tool to help companies better estimate actual Crown share of oil production and avoid proposed DOE penalties - Could be used as check against internal/vendor system royalty calculator…or as sole means to calculate Crown share (Volumetrics would have to be filed in advance) • “Forecast Oil Estimator” - Proposed as means to enhance Form A forecasts - Based on 3-month average deliveries BOTH ESTIMATORS ARE AT DISCUSSION STAGE WITH INDUSTRY AND THE DOE AND ARE SUBJECT TO APPROPRIATE COST ESTIMATE/ BUSINESS CASE/ FUNDING ARRANGEMENTS

21. IRT/IBC Focus Items Con’t • Partner Reporting Update • 18 of 20 companies that responded to a recent IRT survey indicate they are now, or plan to use full Registry partner reporting by year-end. • All vendor systems now have versions with this capability. • Industry benefits are enhanced as more companies move in this direction. Where is your company in implementing this approach?

22. IRT/IBC Focus Items Con’t • Training and Industry Support • IRT continues to be available to help you in working most efficiently with the Registry. • We will come to your “shop” and target a session to meet your needs. Contact any of the IRT through the Registry Service Desk to arrange a session.

23. GCA PROJECTAllowable Costs – AC1

24. Allowable Costs – AC1 • Effective October 2005 all AC1 filings must be done through the Registry. • Operators of Facility Cost Centers (FCC Operators) must use Registry to request new Facility Cost Centers (FCCs) or to change the information for an existing FCC. • This will be done by: • Submitting a batch file to the Registry or, • Accessing the Registry and completing an online submission.

25. Allowable Costs – AC1 • Once the request for a new or changed FCC has been validated by the Registry (immediate) it will be sent to the DOE for final validation and approval. • DOE response time: • FCC setup 4 hours. • FCC changes 1 day. • No FCC changes will be processed during the DOE invoice run (approximately 17th to 24th of each month). • Above timing is subject to Registry and DOE availability.

26. Allowable Costs – AC1 • Data in the Registry can have three statuses: • Unconfirmed – Prior to approval by the DOE. • Confirmed – DOE approves the request (The FCC will be updated with the new FCC ID). • Rejected – DOE rejects the request.

27. Allowable Costs – AC1Con’t • Operator Changes • FCC operator changes are submitted to the Registry by batch or online. • A notification is sent to the new operator requesting concurrence that they agree to take over as operator of the FCC. • When the new operator concurs the FCC operator change is sent to the DOE for their approval. • Once approved by the DOE all FCC information is updated in the Registry and a notification will go to the old and new FCC operators.

28. Allowable Costs – AC1Con’t Access to Data • Query • AC1 Operator History Query can be viewed by all BA’s. • AC1 Owner History Query can be viewed by the FCC operator as well as listed owners. • AC1 Report/Query • Can be requested by the FCC operator and any listed owner. • Report will be in PDF format. • Download file will also be available in XML format.

29. Allowable Costs – AC1Con’t • AC1 Report/Query Data Elements • FCC key data • EUB Facility • Facility Type • Operator • Status and RUL • Reported Facility • Previous FCC(s) • Owners • Contact

30. Allowable Costs – AC1Con’t Communications • Allowable Cost updates will be made using the following: • DOE Gas Royalty Information Bulletin. • Registry Newsletter. • Registry Letters to Change Leaders. • CAPPA Nov 23, 2005 Conference break out session including a panel of industry and DOE representatives. • Targeted communication by the DOE. • Registry Website.

31. Allowable Costs – AC1Con’t Registry Training System • AC1 modules will be available early September. • Access to modules will be available to all users through either: • Company’s existing Comprehensive Package. • Free Starter Package. • If you don’t currently have access to the Registry Training System, or have forgotten your Training ID, contact the Service Desk.

32. Allowable Costs • AC2 - 5 • Design work is well underway with Registry, Industry, and DOE SME’s. • Operators of Facility Cost Centers (FCC Operators) must use Registry to submit AC2-AC5’s. • Non-operators will be encouraged to use the Registry to submit Allowable Cost data (via sub-project). • To be implemented by February 2006. • More details will follow in coming months…Watch for communications!

33. Allowable Costs • The Registry would like to thank all those from Industry that have assisted with the design and document review process. • Further Industry input will be needed for Training Module review and testing. Please contact an IRT member through the Service Desk if you are interested.

34. Did you know? • Changes to the Ensure Complete report. • The timing of Infrastructure Changes to DOE. • Data saved in WIP is not submitted data. • Training system always available and continuously updated.

35. Ensure Complete Report Changes • Slow turnaround for the Ensure Complete report on deadline days over the last couple of months has caused concern and frustration. • The Registry team has published a TIP that lists alternative ways that Registry clients can retrieve information found within the SAF/OAF Ensure Complete Report. See TIPS – Monthly Reporting – Allocations on the Registry website.

36. Ensure Complete Report Changes • Change was implemented on June 10th, 2005 on the default date parameters of the user-requested Ensure Complete report. • Default date was changed to be only two months (Current and one month prior). • Users can still choose to go back to 2002-10, by simply changing the default parameters. • See Registry Alert: Changes to the Default date Parameters of the User-requested Registry Ensure Complete Report

37. Infrastructure Data used by DOE – Timing for Invoice Cycle • Allocations and volumetrics must be received by midnight on the deadline day (i.e. June 15, 2005). • The DOE will use the most recent infrastructure data to validate allocations/volumetrics submissions. Thus, infrastructure updates (e.g. well status changes, facility operational status changes, well to P.E. changes) after the DOE deadline can have an impact on data submitted before the deadline.

38. Infrastructure Data used by DOE – Timing for Invoice Cycle • Infrastructure updates will be accepted by DOE up to 2-3 days after the Allocations/Volumetrics deadline, but before the invoice process commences. • Industry should limit, as much as possible, infrastructure changes relating to prior periods that can impact volumetric or allocation submissions for up to 4 days after the allocation deadline to avoid “unexpected” provisional assessments.

39. Infrastructure Data used by DOE - Timing of UWI changes • Some clients are experiencing timing issues with well ID changes such that unexpected allocation / volumetric rejections are occurring within the DOE even though the submission was accepted by the Registry. • The DOE and Registry analysts have determined a technical solution. A change item has been raised and targeted for implementation within the next 1-2 months. • In the interim, the DOE continues to contact impacted clients directly for resubmission.

40. Data Saved in WIP • Data Saved in WIP is not submitted data. • The WIP (Work in Progress) area is used by production accountants to create or adjust data before it is submitted to the Registry. • The WIP area may contain partially complete data or an earlier amendment depending on how you submit your data. • The following slides detail how to be sure the correct data is in the Registry not left sitting in WIP.

41. Data Saved in WIP When entering the Edit screen VMS997 Confirms the data is the most current submitted information.

42. Data Saved in WIP No message means the data exists in WIP only.

43. Data Saved in WIP Each time you change the view, the data is automatically saved in WIP. See message VMS998.

44. Data Saved in WIP Message VMS998 will also appear each time you click the Save to WIP button.

45. WIP Maintenance To determine what data is Saved in WIP and to clean out the information select WIP Maintenance on the Menu

46. WIP Maintenance Select the Production Month and type of data – Volumetrics, Allocations or Pipeline Splits and click GO. This will display all the WIP data which you can delete, as necessary.

47. WIP Maintenance • Most importantly, users should remember to choose Query Volumetric submission on the menu unless you are planning to Edit Volumetric data on-screen. • Users accessing Edit, when all they really need is a query, is a major reason there are many orphaned/incomplete records in WIP. • Remember, when in Edit mode, changing the volumetric data view (well, facility, summary or proration) automatically saves the data to WIP.

48. Registry Training System • Registry users should remember that the Training System is always available through the website even when the Registry is down. • The modules are maintained and updated throughout the year to reflect any changes to Registry functionality. • The following slides show how to use the training system effectively.

49. Registry Training System To access the training system - Click PSS/Training on the home page and then click Login on the PSS/Training page.

50. Registry Training System Login using your Training User ID and password (not the same as your Registry User ID and password).