The Petroleum Registry of Alberta Energizing the flow of information

1. The Petroleum Registry of AlbertaEnergizing the flow of information Registry Information Session March 22, 2007

2. Agenda • EUB Topics • Water Update • Brine Source Wells • Caverns • Coal Bed Methane Wells • EUB Directives and Bulletins • Did You Know? • GCA Update • Strong Passwords • Notification Suppression • CSV Upload Files • CSV for Upload for BA Users • Distribution Lists Questions/Break • Registry Pipeline Split Adjustment Project

3. 1. EUB Topics

4. WATER UPDATE

5. Current State • EUB has always monitored water reporting. • A good 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 than 5% and less than 20%. • VME0020 – Metering difference is greater than 20%.

6. Water Error Count

7. Analysis • Asked the Oil and Gas Industry to voluntarily reduce water reporting errors. • No significant error reduction - Current Trend • Both VME0015 and VME0020 Water Reporting Error Counts Going up. • EUB is now actively investigating an enforcement path.

8. Brine Source Wells

9. Brine Source Wells Key Points • Brine Source wells are drilled into a saline aquifer for the purpose of producing Brine for non-oilfield related purposes. • Brine is used to make table salt or the kind of salt that is sprayed on highways as antifreeze and to enhance road traction.

10. Reporting Requirement for Brine Water • EUB rules now allow a Brine well to be linked to a new battery subtype of 903 - Brine Production, in the Registry. • Effective January 2007 production month, companies are required to do volumetric reporting in the Registry for Brine Water Production and Disposition. • Prior to January 2007 production month Brine reporting was handled outside the Registry. Therefore, no retroactive adjustments are required via the Registry. • EUB has been contacting companies with existing wells that will have to change their reporting in the Registry.

11. Definitions • Brackish Water (Saline water) • Water that has more than 4000 milligrams per liter [mg/L] of TDS (Total Dissolved Solids). • Fresh Water (Non-Saline Water) • All other groundwater and surface water that does not meet the definition of saline groundwater and has a TDS level less than 4000 mg/l. • Water • BS&W that is recovered in association with the production of oil and gas. • Brine • Is the well status “BRINE” in the Registry, used to represent wells that produce Brackish/Saline Water.

12. Brine Reporting Step #1 Click Request Facility ID

13. Brine Reporting Step #2 Input facility location No license # required Click Submit when complete Use Facility Sub-Type 903

14. Brine Reporting Step #3 System will assign this Facility number

15. Brine Reporting Step #4 Click Edit Well Status

16. Brine Reporting Step #5 Highlight the current status and Click Delete

17. Brine Reporting Step #6 Click Add

18. Brine Reporting Step #7 From the Drop Down Menu, pick either Brine Flow of Brine Pump

19. Brine Reporting Step #8 Attach the Brine well to the Brine facility, Input GCI, pool code and Click Submit.

20. Brine Reporting Step #9 You will get this confirmation note when successfully completed

21. Brine Reporting Step #10 Input data as “BRKWTR”

22. CAVERNS

23. Cavern Key Points • One of the common ways that caverns are created is by using a solution mining process. Fresh water is injected into a salt formation which results in Brine being produced. • Underground Caverns are used for: • Waste Disposal / Reclamation. • To store large volumes of hydrocarbons.

24. Example Of An Underground Cavern Used For Storage

26. Form S-25 • The S-25 is used to report waste disposed (injected into the cavern) as well as any volumes recovered including oil, solids and brine. • The S-25 statement is not part of the Petroleum Registry of Alberta and, therefore, is submitted to the EUB in paper format. • Generators of oilfield waste must independently enter disposition volumes into the Registry using the facility identifier code (AB WP) of the waste facility accepting the waste delivery. • For more information on Cavern reporting please refer to Directive 047, Ch.4.

27. Sample S-25 Mark this box for Cavern Reporting

28. COAL BED METHANE WELLS

29. Coal Bed Methane Wells (CBM) Key points • Unlike conventional natural gas pools, CBM is found in deep porous rock formations. • CBM gas is found within coal seams sometimes at much shallower depths. • Rather than existing as free pools, the gas is bonded to the coal and is released through depressurization of the coal. • CBM is “sweet” gas, requiring little if any refining and is considered our cleanest burning fossil fuel.

30. Coal Bed Methane Reporting • Infrastructure - under Well Status: • CBMCLS for wells completed in coal(s) only. • CBMOT for wells completed in coal(s) and another lithology such as sandstone etc. • Volumetric Reporting: • Similar to conventional Gas Production Reporting.

31. CBM options

32. Directives and Bulletins

33. How To Find Directives And Bulletins • Found on EUB’s website www.eub.ca • Under Industry Zone – Rules, Regulations, Requirements.

34. www.eub.ca From the Industry Zone Menu pick “Rules, Regulations, Requirements”

35. BULLETINS

36. DIRECTIVES

37. Directives and Bulletins Used in This Presentation • Directive 007 (Production Accounting Handbook) • Directive 035 (CBM) • Directive 044 (Water Reporting) • Directive 047 (Caverns - S-25) • Bulletin 2006-11 (Water Definitions) Also, you can contact: • PA Helpdesk @ EUB 297-8952 • Wells Records Helpdesk@ EUB 297-8696

38. 2. Did You Know?

39. GCA Update • Overall the GCA subcommittee provided positive feedback on the 2006 GCA season, however there were some suggested changes. • All known and most suggested changes for GCA have been resolved in the Registry. • The Registry will be open several extra Sundays during the GCA season which are posted on the monthly Registry Operations and Service Desk hours calendars. • The expected AC2 reports are now being posted in the Registry Ministry Invoices and Statements.

40. GCA Update cont’d • The expected AC5 reports will start to be posted in the Registry Ministry Invoices and Statements April 14, 2007. • There are two new summary reports being developed: • AC4 summary report is now available. • AC2 summary report which will be available for request in the Registry April 5, 2007. • Both reports will have a one line summary for each FCC id and will include whether the FCC submission is confirmed, unconfirmed or missing.

41. Strong Passwords • Strong Password use in the Registry is now mandatory. • Designed to enhance Registry security. • Passwords must be at least six characters long and include 3 of these four elements: • Lower case letters. • Upper case letters. • Numbers. • Special characters.

45. Notification Suppression • You may control the notifications that you receive, at any time, by deciding whether to accept or suppress them. • There are however three restrictions on your ability to suppress notifications. • BA Level Override - Any BA user with the Manage BA Notification Preferences task can override suppression choices for the BA. • One Recipient - Any BA user with the Manage BA Notification Preferences task can ensure that at least one applicable user receives a notification. For example, if you are the last user to choose to suppress a notification, you will not be able to make that suppression, and you must receive the notification.

46. Notification Suppression cont’d • Registry Must Issue - Some notifications must be sent by the Registry to all applicable users. There is no ability to suppress these notifications. An example of a "Registry Must Issue" notification is the EUB Non Compliance Rpt - Auto Created Warning. • The Registry BA Inbox receives the original of every notification.