The Petroleum Registry of Alberta Energizing the flow of information

1. The Petroleum Registry of AlbertaEnergizing the flow of information Registry Information Session February 22, 2008

2. Agenda • REGISTRY TOPICS Outside Jurisdiction Interest Update • ERCB TOPICS • Directive 007 Updates • Gas Inventory Adjustments • SAGD • Well Shut In’s/Suspensions • Water Portfolio • INDUSTRY TOPICS • Crown Inventory Reporting • Registry/IBC Report Committee • Royalty Attribute Change Report • Managing Allowable Costs • DOE Oil Penalties • Proper Use of PURREC/PURDISP • DID YOU KNOW? • Registry Training Update Project • “Don’t Click Again” • Upcoming Change to Passwords • Pipeline Spit Current Report • Registry Service Desk Items: • Pipeline Splits – Submit from Edit Page • Popup Blocker Issues • Reporting of Load Fluid at a Gas Plant • QUESTIONS

3. 1. REGISTRY TOPICS

4. Registry Topics • Interest from Outside Jurisdictions • British Columbia • Post Business Case completion discussions continue. • Yukon • Opportunity Assessment/Evaluation activities in progress. • Manitoba • Meeting held with the Manitoba Ministry of Science, Technology, Energy & Mines in early January. • Saskatchewan • Meeting held with the Saskatchewan Ministry of Energy & Resources at the end of January.

5. 2. ERCB TOPICS

6. Directive 007 Updates

7. Directive 007 Updates • Directive 007 has been renamed from “Production Accounting Handbook” to “Volumetric and Infrastructure Requirements” • Now there are two parts to it: • Regulations and Requirements Portion • The On-Line Supplement Portion – The How to Section • The Supplement will be updated as necessary to reflect new changes, additions and deletions.

8. Where Directive 007 Supplement is found on the ERCB Web This Supplement will be updated as necessary

9. Directive 007 Update Highlights • All references to: • Guides • Information Letters (IL’s) • Interim Directives (ID’s) have been rescinded or superseded.

10. A Notable Update to Section 1 in Directive 007 • Effective January 31, 2008, the ERCB is no longer accepting “S” Reports for the September 2002 production month or earlier, unless directed by the ERCB under special circumstances. • Amended volumetric submissions are subject to a closed five-year reporting period.

11. Directive 007 Updates, Section 1 Cont’d S30’s – Monthly Gas Processing Plant Sulphur Balance Report • The previous S30 information in Directive 007 has been superseded by Bulletin 2007-37.

12. Highlights of Bulletin 2007-37 • Effective January 2008 production, companies must submit S-30 reports electronically through the ERCB DDS system. • The ERCB will no longer accept S-30 reports submitted by mail, e-mail, or fax covering the reporting periods of January 2008 and thereafter. • Please refer to Bulletin 2007-37 for more information.

13. S-30 and DDS System Contacts • For questions about submitting S-30 reports using the DDS system, please contact the ERCB S-30 DDS Support desk by: • Telephone at (403) 297-8468 or by • e-mail at S30Support@ercb.ca. • Inquiries may also be directed to the ERCB Customer Contact Centre by: • Telephone at (403) 297-8311 or by • e-mail at Inquiries@ercb.ca.

14. Directive 007 Updates Cont’d • The Commingling verbiage in Section 3.1.2 has been revised to align with Directive 065 (Resources Applications for Conventional Oil and Gas Reservoirs) requirements.

15. Directive 007 Updates Cont’d • Section 5 Compliance and Enforcement • Old information has been replaced with a direct reference and link to Directive 019 (Compliance Assurance-Enforcement) . • Error Messages Identifier Description listing has been added.

16. Directive 007 Updates Cont’d • Section 3: Definitions of 14 facility subtypes have been added and or revised.

17. Gas Inventory Adjustments

18. Directive 007 on Inventory Adjustments (INVADJ) • Inventory Adjustments in general, are used to report gains and losses that cannot be identified by a specific activity and/or production month. • If an operator finds out the cause of the gain or loss, an amendment must be filed.

19. Directive 007 on Inventory Adjustments (INVADJ) Cont’d • An operator may also use inventory adjustment when an adjustment to closing inventory is required due to: • Water tank cleanout • Loss of sulphur from sulphur pad • Oil Theft • Oil Fires (Use AB MC for Gas Fires) • Spills

20. Gas Inventory Adjustments • ERCB has determined that the following facilities should not maintain gas inventories: • Gas Plants • Gathering Systems • Batteries • Others - Injection/Disposal • As a result, Gas Inventory Adjustments (INVADJ) must not be reported at these facilities. • ERCB will be contacting the few companies who are reporting Inventory Adjustments for these facilities.

21. Gas Inventory Adjustments Cont’d • Only 2 AB PL subtypes will be allowed to report GAS INVADJ: • 204 - Gas Transporter • 206 – Gas Distributor • Also, note that Gas Inventories or Gas Inventory Adjustments (INVADJ) are not reported in the Registry for AB IF subtype 505 (Underground Gas Storage) facilities.

22. Gas Inventory Adjustments Cont’d • For a new facility needing line fill (filling lines with gas): • Report this gas under metering difference (DIFF), depending on circumstances, the non-compliance charges may be waived. • Not as Closing Inventory (INVCL) • Not as Inventory Adjustment (INVADJ) • Please contact the ERCB PA helpdesk for more details.

23. Gas Inventory Adjustments Cont’d • Gas Inventory Adjustments should not be used to lower metering differences at: • Batteries • Gathering Systems • Gas Plants • Others - Injection/Disposal

24. Gas Inventory Adjustments Cont’d • When there is a Gas Metering Difference, the operator is required to: • Check the calibration on their meters. • Ensure that they are using the right size orifice plates and they are not damaged. • Ensure that all Gas and Gas Equivalent Volumes of all products Receipts and Dispositions are properly accounted for. • Ensure that all Gas Flared, Vented, and Lease Fuel are accounted for. • Ensure that the Gas Equivalent Volume of recombined condensate (if any) is accounted for. • Use the gathering system and gas plant gas inlet volumes rather than the battery gas disposition volume. • Refer to Directive 17 (Measurement requirements for Upstream Oil and Gas Operations) or contact the PA helpline for clarification.

25. Steam Assisted Gravity DrainageSAGD

26. What is SAGD?

27. Reporting of SAGD • There are two ways of reporting SAGD depending on circumstances: • Under one well • Under two wells

28. An Example of SAGD Operation (Two Wells)

29. Reporting of SAGD What is unique about a well with SAGD status in the Registry? • No Fluid Codes in the Well Status (N/A N/A SAGD N/A) • A well with SAGD status is required to be linked to two facilities in the Registry: • A Battery (To report production) • An Injection Facility (To report Injection) • The Registry allows total Injected and Produced hours to exceed 744 in a 31 day month or 720 in a 30 day month.

30. Reporting of SAGD cont’d • Currently, a SAGD well can be linked to one of the following Battery Subtypes: • 311 - CRUDE OIL SINGLE-WELL BATTERY • 321 - CRUDE OIL MULTIWELL GROUP BATTERY • 322 - CRUDE OIL MULTIWELL PRORATION BATTERY • 331 - CRUDE BITUMEN SINGLE-WELL BATTERY • 341 - CRUDE BITUMEN MULTIWELL GROUP BATTERY • 342 - CRUDE BITUMEN MULTIWELL PRORATION BATTERY • 344 - IN-SITU OIL SANDS

31. Reporting of SAGD cont’d Currently, a SAGD well can be linked to one of the following Injection Facility subtypes: 501 – ENHANCED RECOVERY SCHEME 506 – IN-SITU OIL SANDS

32. Reporting of SAGD Under One Well Same well linked to both facilities

33. Reporting of SAGD Under Two Wells Both wells linked to both facilities

34. How To Change to SAGD Status Before After

35. Well Shut In’s and Suspensions

36. The General Rule on Well Suspensions • If a well is shut in for 12 consecutive months, it is required by ERCB Directives 007* and 13* to be suspended. • Directive 007* (VolumetricInfrastructure Requirements) • Directive 13* (Suspension Requirements for Wells) • More details to follow…

37. Directive 007on Well Suspensions • For a well in which production or injection operations have ceased for an indefinite period of time, you are required to suspend it within 12 months after the last production or injection has occurred.

38. Directive 007 on Well Suspensions Cont’d • Volumetric information for a suspended well is not required. • The only valid activity is “shut-in”, although not recommended.

39. Inactive Wells as definedin Directive 13 • Inactive critical sour and inactive acid gas wells: • Wells that have not reported any type of volumetric activity (production, injection, or disposal) for 6 consecutive months; and • All other inactive wells: • Wells that have not reported any type of volumetric activity (production, injection, or disposal) for 12 consecutive months.

40. Exceptions to Directive 13 Suspension Requirement • A well does not need to be suspended after 12 consecutive months of non production under the following circumstances: • When a well is produced only to supply a seasonal market. • When a well is shut in to make up for overproduction. • When the well type code is “observation.” • When a well is approved for “deliveries equals production” until all production has been allocated to the well. (Well statuses with Crude Bit as fluid type)

41. Oil and Gas Conservation Regulation 12.020(1) “The operator of a well must, when required by Directive 007, Production Accounting Handbook*, keep and file a record with the Board relating to the status of a well in accordance with Directive 007, Production Accounting Handbook and any amendments to Directive 007, as published by the Board.” * Production Accounting Handbook is now renamed to “Volumetric and Infrastructure Requirements” in Directive 007

42. Updates on Well Suspensions • By the last count made on January 24th,2008, there were 11,066 potential suspended wells which were not suspended in the Registry. • Almost every company in Industry has 1 or more wells that need potentially to be suspended. • ERCB will be following up with Industry over the next few months to address the problem.

43. Water Portfolio

44. Water Error Count Going Up

45. Stats On Water Error Count • By the last count made on February 13th, 2008 there were: • Total 8,793 water errors outstanding since the Registry went live (2002). • 222 companies with water errors • 2,598 facilities • ERCB will be contacting the affected companies in the coming months.

46. Two Water Facility Subtypes Redefined • In order to correctly track the water source being used for oilfield injection (subtypes 501(EOR) and 506 (in Situ), ERCB has redefined two water facility subtypes in Directive 007: • 901 AB WS – Water Source. • 902 AB BT – Water Source (used to be called Miscellaneous).

47. Water 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 • S&W that is recovered in association with the production of oil and gas.

48. 901 AB WS - Water Source • The source of fresh (non-saline) water can either come from a shallow drilled source well (<150m), river, lake, or other surface locations. In all cases, the location/source of water is reflected by a specific geographic location and is licensed by Alberta Environment. • It is not a reporting facility (WS). Water Source needs to be reported at a receiving facility with the activity of REC and the product Fresh Water (FSHWTER). A new edit will be added to the Registry to ensure only Fresh Water can be reported for a WS receipt.

49. 902 AB BT – Water Source(used to be called Miscellaneous) • A facility type set up to link one or more ERCB licensed freshwater source wells (fresh [non-saline] or brackish [saline]). Most of these wells are deep (>150 m). • It is a reporting facility (BT) – These batteries can report production of Fresh Water (FSHWTER) and/or Brackish Water (BRKWTR). A new edit will be added to the Registry to ensure only Fresh and Brackish water can be reported at these batteries.

50. For More Help… Contact the ERCB • PA Helpdesk @ ERCB 297-8952 option 3 email: PA.help@ercb.ca • Can provide more information and instructions on all of the ERCB topics covered today. • Wells Records Helpdesk @ ERCB 297-8696