OGOR Reporting – Update on Edits and Common...

Office of Natural Resources Revenue (ONRR) U.S. Department of the Interior

Industry Compliance Accurate Revenues and Data Professionalism & Integrity

OGOR Reporting – Update on Edits and Common Reporting Problems

Presented by: Kimbra Davis, Program Manager for Production Reporting and

Verification

Petroleum Accountants Society of Oklahoma February 7, 2013


Production Reporting & Verification (PRV)

Kimbra Davis, Program Manager

(303) 231-3514 [email protected]

Production Reporting Louise Williams,

Manager (303) 231-3439

[email protected]

Error Correction/Missing

Team 1 Jane Heschele, Team

Supervisor (303) 231-3675

[email protected]

Error Correction/Missing

Team 2 Luke Lundmark, Team


[email protected]

Production Inspection & Verification

Robert Kronebusch, Acting Manager (303) 231-3510

[email protected]

LVS/GVS & PASR Vicky Stafford, Team


[email protected]

Measurement Inspection/Program

Support TBD

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Production, Reporting & Verification (PRV)


Production data received from approximately 2,000 oil and gas operators 6.1 million lines of production data reported in FY 2012

155,000 errors corrected in FY 2012 2.5% error rate

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PRV Responsibilities

• Manage the Oil and Gas Operations Report (OGOR) • Receive, process, and perform error correction for production reports • Resolve missing exceptions for Wells, OGORs, and PASRs • Resolve all Well data, OGOR, and PASR exceptions • Resolve volume exceptions generated by the LVS and GVS • Provide timely production data to BLM, BSEE, States/Tribes, Public, etc. • Issue Orders to Report and Notices of Non-Compliance • Support Measurement Inspection activities

Industry Compliance Accurate Revenues & Data Professionalism & Integrity

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The OGOR is used to report the summary of ALL operations conducted on a lease/agreement during a specific production month. OGOR-A: API well number, well status, and monthly

production and injection volumes OGOR-B: Disposition code and volume disposed OGOR-C: Oil inventory balance (production and sales)

Oil and Gas Operations Report


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OGOR-A

OGOR - Relationship Between Parts

WATER GAS OIL WELL 1 20 80 10 2 20 80 10 3 10 50 5

TOTAL 50 210 25

OGOR-B

WATER GAS OIL SALES 200

PROD. INTO FACILITY 50 ON-LEASE 25 ON-LEASE 10

OGOR-C

ENDING INVENTORY

TOTAL 50 210 25

PRODUCT BEGINNING INVENTORY PRODUCTION SALES

OIL

TOTAL

10

10

50

50

40

40

20

20

Volumes reported as produced on OGOR-A equal

volumes reported as disposed (sold) on OGOR-B

Volumes reported as produced into a facility prior to sale ‘Disposition

Code 10’ on OGOR-B equal production

volumes on OGOR-C

Inventory

Production

Disposition


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Production Reporting Process Overview

Financial Accounting System

Database

Financial Accounting System

Royalty lines Operations

Reports From

Operators

Error Correction

Reference Data Reports

To Operators via the internet

Confirmation & Missing Reports

To Operators via the Internet

Monthly Production Reports To States /

Tribes / BIA

Audit and Compliance

Management

Management Reports

BLM INSPECTION OFFICES BLM INSPECTION OFFICES

BSEE Regional

Offices BLM Service Center

Onshore OGOR Lease & Well Information


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Despite reporting correctly, we get a lot of rejects because the ONRR and BLM databases are not in sync. What is being done to stop these false rejects from occurring?

Industry Question #1

• ONRR is working with BLM to analyze the well reference data transmission processes and identify root causes of errors in order to find a solution.

• ONRR is dependent upon BLM updating our data base with the updated well/lease/agreement/production month information.


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High Level Onshore Well & OGOR Data Flow (with Primary & Secondary Metric Points)

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ONRR's error/reject report is generating false errors on beginning/ending inventory balances. Will this be fixed prior to dropping in the upfront edit on beginning/ending inventory?


• ONRR has experienced a system problem with the new inventory edits (11030 & 11050) when a modified report is submitted.

• A Fatal error is incorrectly generated when a Modify OGOR for the prior month has been accepted with no OGOR-C and then the next month's Original document is validated with an OGOR-C.

• We are working to resolve the issue and have turned the edits to a Warning error until the problem is corrected.


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Can industry get read-only access to ONRR completion data and BLM completion data? This access would enable us to do some research without assistance from agency personnel.


• Some completion data (e.g., API well no., producing interval, operator well number, well name, well formation, well location) is available on the Well Confirmation Report in ONRR’s Data Warehouse portal.

• BLM owns the Well Completion or Recompletion Report and Log (Form 3160-4) and can address AFMSS access to this data.


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How often is the Well Confirmation Report updated and can we get Reporter Training on how to understand the information on the report?


• The information is updated once a month in our Data Warehouse portal.

• We provide examples of the Well Confirmation Report (see next slide) and explain the data in each of our Reporter Training sessions held three times a year.

• The information regarding the Reporter Training sessions is on our webpage at www.onrr.gov/FM/Training/default.htm


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Well Confirmation Report

• The information is updated once a month in our Data Warehouse portal.

• We provide examples of the Well Confirmation Report (see next slide) and explain the data in each of our Reporter Training sessions held three times a year.

• The information regarding the Reporter Training sessions is on our webpage at www.onrr.gov/FM/Training/default.htm

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April 16, 2013 Oklahoma City May 14, 2013 Houston, TX June 10, 2013 Denver, CO Note: Dates are tentative pending confirmation of hotel and meeting room accommodations.

Production Reporter Training Classes


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Could ONRR expand the hours of access to the ONRR portal as it is currently closed evenings and weekends?


• ONRR can not expand after hours access at this time because of processing time limitations.

• Since all reporting transactions are processed in real time, we do our full batch jobs (Accounts Payables/Receivables, General Ledger, Billing/Exception Processing, data from BLM/BSEE etc.,) at night after 6 pm and before 6 am so that the daytime processing will not interfere with the nightly batch processing.

• ONRR will explore this issue after scheduled software and hardware upgrades are completed which should give us faster processing time.


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Do you anticipate any additional OGOR reporting requirements or changes in 2013/2014 for either onshore or offshore?


• ONRR is changing how you report gas sold under an arm’s-

length percentage-of-proceeds contract (APOP). • Operators with gas production that is transferred to a

separation facility or plant facility for processing must report Disposition Code 11 – Transferred to Facility, on the OGOR-B.

• Also required to report the corresponding gas plant identification number on the OGOR-B.

• A Dear Reporter letter is forthcoming.


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Web Address for this page: http://www.onrr.gov/FM/ReptInfo.htm

OGOR Reporting – Update on Edits and Common...

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