Saskatchewan EPAP on Petrinex · V1.1 Update Appendix 2 Updated Screen Prints February 9, 2016 V1.2...

Petrinex Saskatchewan EPAP on Petrinex Industry Readiness Guide

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Saskatchewan EPAP on Petrinex

Industry Readiness Guide

Version 1.2


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EPAP on Petrinex Industry Readiness Guide Change Log

Version Release Title Key Changes Release Date

V1.0 Initial Release Creation of document.

V1.1 Update Appendix 2 Updated Screen Prints February 9, 2016

V1.2 Update Section 1.3, 2.6, 2.7, Appendix 8 and 9

Updated timing for IIO Testing and Training March 8, 2016

Notes

EPAP Change Leaders will be notified of all available updates to this Guide.


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Table of Contents Overview ..................................................................................................................................................... 5 1.0

Background ............................................................................................................................................. 5 1.1

Important Information for existing Alberta EPAP Users ......................................................................... 6 1.2

High Level Timing and Organization of Readiness Activities & Materials .............................................. 6 1.3

Key Contact Information ......................................................................................................................... 8 1.4

Recommended Steps to Readiness ............................................................................................................. 9 2.0

2.1 Read and fully understand the new Directives and the EPAP Operator’s Guideline.............................. 9

2.2 Know who your EPAP Change Leader is and how they can help with readiness. ................................ 10

2.3 Read and fully understand the Saskatchewan EPAP on Petrinex Readiness Guide. ............................ 10

2.4 Ensure your BA User Security Administrator (USA) creates security roles and sets up users. ............. 11

2.5 Be aware of important dates. ............................................................................................................... 11

2.6 Ensure your staff members are trained. ............................................................................................... 12

2.7 Take the opportunity to test the Declaration Facility Upload file. ....................................................... 13

2.8 Take the opportunity to submit a Trial Declaration. ............................................................................ 13

Summary of Petrinex EPAP Functionality and Support Services .............................................................. 15 3.0

3.1 Audit Program Information ................................................................................................................... 17

3.2 Declaration Reporting ........................................................................................................................... 17

3.2.1 Availability and deadlines for the Declaration .............................................................................. 17

3.2.2 Reporting by Theme ...................................................................................................................... 18

3.2.3 Attached PDF version of the Declaration ...................................................................................... 20

3.2.4 The EPAP Declaration Facilities Report ......................................................................................... 20

3.3 Compliance Assessment Indicator (CAI) Reporting .............................................................................. 21

3.3.1 Availability of Monthly CAIs. ......................................................................................................... 21

3.3.2 Features to aid in CAI analysis ...................................................................................................... 21

3.4 Workflow............................................................................................................................................... 22

3.4.1 Statuses & User Security Roles ..................................................................................................... 22

3.4.2 Workflow Types ............................................................................................................................ 22

3.4.3 Industry Review Investigations ..................................................................................................... 23

3.4.4 Industry Reviewed Dates vs Regulator Acceptable Dates ............................................................ 24

3.5 Dashboard ............................................................................................................................................. 25

3.6 User Security Administration & Support .............................................................................................. 27

3.7 User Support Services ........................................................................................................................... 27


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3.7.1 Petrinex Service Desk .................................................................................................................... 27

3.7.2 Petrinex Website ........................................................................................................................... 27

3.7.3 Industry liaison and support (Industry Team at Petrinex) ............................................................ 27

3.7.4 Change Management Processes ................................................................................................... 28

3.7.5 Learning Resource Centre/Training .............................................................................................. 28

Appendix 1: Saskatchewan Communications to Stakeholders ............................................................................. 29

Memorandum: May 13, 2015: .......................................................................................................................... 29

Letter to Operators: September 4, 2015: ......................................................................................................... 32

Appendix 2: EPAP on Petrinex Screen Views ........................................................................................................ 34

Edit Declaration Screen - Expanded .................................................................................................................. 34

Declaration Reporting Theme ........................................................................................................................... 36

Request Workflow ............................................................................................................................................ 39

Edit Workflow ................................................................................................................................................... 40

Query CAI (Summary View) .............................................................................................................................. 42

Query CAI (with CAI Details View) .................................................................................................................... 44

Dashboard ......................................................................................................................................................... 46

Appendix 3: About Petrinex .................................................................................................................................. 48

1. Petrinex Governance, Operations and Administration............................................................................. 48

2.0 Industry Representation and Opportunities for Input .......................................................................... 49

2.1 Industry Team at Petrinex ................................................................................................................. 49

2.2 EPAP Stakeholder Committee ........................................................................................................... 50

2.3 Industry Benefits Committee ............................................................................................................ 50

2.4 Key Contact Information ................................................................................................................... 50

2.5 Key Petrinex Terms ........................................................................................................................... 50

Appendix 4: Petrinex Security Overview............................................................................................................... 52

Appendix 5: Petrinex User Security Role Templates for EPAP .............................................................................. 54

Appendix 6: Workflow Capabilities for EPAP User Security Roles ........................................................................ 56

Appendix 7: Petrinex Compliance Assessment Indicator (CAI) Numbers for Saskatchewan ............................... 63

Appendix 8: Instructions for Industry Interoperability Testing ............................................................................ 69

Appendix 9: Instructions for Industry Training ..................................................................................................... 71

Appendix 10: Definition of EPAP Terms ................................................................................................................ 73


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Overview 1.0

Background 1.1

In early 2014, the Saskatchewan Ministry of the Economy (ECON) made the decision to implement changes to their Oil and Gas Measurement Reporting requirements. The goal was to form a collaborative approach to measurement by partnering with the Alberta Energy Regulator (AER) to harmonize measurement requirements across jurisdictions to the most practical extent.

Plans were made to create harmonized measurement and reporting directives between the provinces and for ECON to implement the Enhanced Production Audit Program (EPAP) currently used in Alberta which was implemented by the AER in 2010. The purpose of EPAP is to:

Provide a reasonable level of assurance that the reported volumetric data is accurate and complete in accordance with the Regulator’s requirements.

Ensure continuous improvement in the level of compliance with the Regulator’s measurement and reporting requirements.

EPAP requires at least one senior executive from each operator to attest, on an annual basis, to the level of

compliance with respect to measurement and reporting at the facilities they operate.

Saskatchewan EPAP History

Workshops were held throughout 2014 involving ECON, the AER, and Industry representatives to develop a harmonized measurement directive based on the existing AER Directive 017: Measurement Requirements for Oil and Gas Operations. These workshops lead to the creation of the new measurement Directive PNG017: Measurement Requirements for Oil and Gas Operations in Saskatchewan.

ECON released a formal memorandum on May 13, 2015 highlighting forthcoming changes to measurement and reporting requirements. Directive PNG017 was introduced along with the intention to harmonize reporting requirements with those in Alberta including the adoption of EPAP. Please see Appendix 1: Saskatchewan Communications to Stakeholders to see the communications sent to Industry.

Requirements regarding EPAP and the declaration process are covered in Alberta under AER Directive 076: Operator Declaration Regarding Measurement and Reporting Requirements. On September 4, 2015, ECON sent a letter to all operators in Saskatchewan regarding the implementation of EPAP and to invite industry to a consultation for the development of the new harmonized Directive PNG076: Enhanced Production Audit Program (EPAP) for Saskatchewan. This consultation took place in Calgary on October 8, 2015.

In furthering the approach of harmonization, ECON will utilize the same EPAP functionality in Petrinex that the AER is currently using today. Since October 2014, all Alberta operators have been using Petrinex to submit their annual EPAP Declarations, conduct investigations for Compliance Assessment Indicators (CAIs), report Noncompliance Events (NCEs), as well as communicate with, and respond to inquiries raised by the AER. See Appendix 10: Definition of EPAP Terms for some brief definitions related to EPAP reporting.

Petrinex is a joint strategic organization supporting Canada’s upstream, midstream and downstream oil and gas industry and is represented by Government (Alberta Energy, the AER and ECON); and Industry (the Canadian Association of Petroleum Producers (CAPP) and the Explorers and Producers Association of Canada (EPAC)). Petrinex contributes to substantial improvement in the efficiency, accessibility and quality of


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information communicated between operators, producers, Government and Industry partners. For more information about Petrinex, see Appendix 3: About Petrinex and visit the Petrinex website at www.petrinex.ca

Important Information for existing Alberta EPAP Users 1.2

It should be noted for those companies operating in both Saskatchewan and Alberta that the functionality in Saskatchewan will be the same as the functionality currently being used in Alberta. Any differences between the jurisdictions will be minor and based on informational aspects as opposed to functional (e.g. facility subtypes that exist in Saskatchewan but not in Alberta).

Most of this guide is intended to assist those operators in Saskatchewan that will be new to EPAP reporting. For operators that are already engaged in EPAP reporting in Alberta, the following sections should be reviewed:

2.0 Recommended Steps to Readiness: This section should be reviewed for important readiness related information including new Saskatchewan directives, important dates, testing of the Declaration Facilities Upload, and details of ECON’s Trial Declaration period.

Appendix 1 Saskatchewan Communications to Stakeholders: These are the official communications that were released to Industry regarding new measurement requirements and the EPAP program.

Appendix 7 Petrinex CAI Numbers for Saskatchewan: While most of the CAIs in Saskatchewan are the same as those in Alberta, there are some new CAIs for Saskatchewan. There are also some CAIs in Alberta that do not apply in Saskatchewan. Details on applicable facility subtypes are also provided.

Appendix 8 Instructions for Industry Interoperability Testing: Operators will have the opportunity to test the Declaration Facility List Upload CSV file. This is the upload that provides the facility responses to the control questions in each reporting theme. Alberta companies may already have experience using this upload and choose not to send a test file; however, any interested companies should review this section.

High Level Timing and Organization of Readiness Activities & Materials 1.3

All of ECON’s new EPAP directives and guidelines will be implemented in Saskatchewan on April 1, 2016. Prior to that time, there are several readiness materials and activities that any participants who will be conducting EPAP related duties at their company should be aware of. The table below provides a summary of readiness materials and activities that will be available by month. Some activities and materials listed below will be covered in more detail further on in this guide.

http://www.petrinex.ca/


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READINESS ACTIVITIES/MATERIALS BY MONTH

Month(s) Activities/Materials

Ongoing • Saskatchewan EPAP Reporting on Petrinex initiatives page will be updated regularly with readiness updates. • Saskatchewan EPAP on Petrinex Industry Readiness Guide will be updated as required.

May 2015 • New ECON Directives available: - PNG017: Measurement Requirements for Oil & Gas Operations

Jan 2016 • New ECON Directives available: - PNG076: Enhanced Production Audit Program (EPAP) - PNG028 Guideline: Initiating & Operating the Enhanced Production Audit Program (EPAP)

Feb 2016 • EPAP Change Leader Meetings ( in Calgary on Feb 10th & Estevan on Feb 23rd). • Template/Instructions for EPAP Declaration Theme Facility Responses csv upload available.

Mar 2016 • Training Modules and Job Aids related to EPAP functionality on Petrinex available (end of March). • Industry Interoperability (IIO) Testing period begins and runs until November 2016.

Apr 2016 • EPAP implementation (new regulations & Petrinex functionality).. • Trial Declaration period begins.

May 2016 • Online Demo Videos available

The Saskatchewan EPAP Reporting on Petrinex link on the Petrinex Initiatives page is where Industry can gain access to materials such as this Industry Readiness Guide, important links to related websites, tips and job aids pertaining to EPAP functionality on Petrinex, and presentation material used at Change Leader meetings. Materials will be added and updated as necessary throughout the readiness period and will available for at least one year beyond the ECON implementation date of April 1, 2016. To access this page, go to the main Petrinex website, www.petrinex.ca, and click on the Initiatives tab on the top menu bar. A key “success factor” for EPAP in Saskatchewan is the active involvement of Industry stakeholders at each stage along the way. A number of senior EPAP representatives from several operators were actively involved in the consultation workshops regarding the development of the new Saskatchewan directives. In Alberta, the AER and Petrinex communicate and consult with Industry via the EPAP Stakeholder Committee. With the focus for EPAP being on harmonization between jurisdictions, ECON is planning on joining the existing committee in 2016. This means that the EPAP Stakeholder Committee will continue to be the primary venue of communication for EPAP related matters/issues encompassing both Alberta and Saskatchewan.

The EPAP Change Leader program is a key component of the Industry readiness strategy. Every operator impacted by EPAP in Saskatchewan has been asked to identify an EPAP Change Leader to be the primary point



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of contact with Petrinex and ECON and take the lead in ensuring others at their company are prepared for the changes being introduced. More information on EPAP Change Leaders is provided in Section 2.0, “Recommended Steps to Readiness”.

Key Contact Information 1.4

For EPAP Policy related queries, contact Blake Linke, Compliance Program Manager, Saskatchewan Ministry of the Economy, 306-787-6494, [email protected]

For Petrinex queries related to EPAP , contact Steve Freeman, Industry Coordinator, 403-297-2311, [email protected]

mailto:[email protected]



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Recommended Steps to Readiness 2.0

All operators that will be required to participate in EPAP are strongly encouraged to follow the outlined “Recommended Steps to Readiness” to ensure that they are ready when the program starts in Saskatchewan on April 1, 2016.

Steps to Readiness

2.1 Read and fully understand the new Directives and the EPAP Guideline.

2.2 Know who your EPAP Change Leader is and how they can help with readiness.

2.3 Read and fully understand the Saskatchewan EPAP on Petrinex Industry Readiness Guide.

2.4 Ensure your BA User Security Administrator creates security roles and sets up users.

2.5 Be aware of important dates.

2.6 Ensure your staff members are trained.

2.7 Take the opportunity to test the Declaration Theme Facility Upload file.

2.8 Take the opportunity to submit a Trial Declaration.

Detailed Steps to Readiness

2.1 Read and fully understand the new Directives and the EPAP Operator’s Guideline.

It is vitally important that all companies understand how measurement requirements have changed in Saskatchewan and how the related reporting requirements will be changing under EPAP. To understand these new requirements, all operators will need to become familiar with the following directives that ECON has put in place along with the guideline for implementing and operating EPAP:

Directive PNG017: Measurement Requirements for Oil & Gas Operations The purpose of this directive is to consolidate, clarify, and update the regulatory requirements with respect to measurement points used for accounting and reporting purposes, as well as those measurement points required for upstream petroleum facilities and some downstream pipeline operations under existing regulations. Compliance with the requirements set out in this directive is mandatory. A copy of this new directive can be found on ECON’s website at http://www.er.gov.sk.ca/Directive-PNG017.

Directive PNG076: Operator Declaration Regarding Measurement & Reporting Requirements This directive applies to all Business Associates that operate facilities that are subject to the Regulator’s measurement and reporting requirements and Petrinex reporting requirements. It pertains to oil, natural gas, and water handling facilities but does not apply to mineable oil sands. This directive sets out requirements for operators to declare the degree to which they have controls in place to ensure compliance with the Regulator’s measurement and reporting requirements. A copy of this new directive can be found on ECON’s website at http://www.economy.gov.sk.ca/epap.

Guideline PNG028: Initiating & Operating the Enhanced Production Audit Program (EPAP) The purpose of this guideline is to provide guidance to operators with respect to implementing and operating EPAP. It covers several topics to aid operators in designing and implementing a system of controls, investigating potential compliance deficiencies, remediating deficiencies, and maintaining

http://www.er.gov.sk.ca/Directive-PNG017

http://www.economy.gov.sk.ca/epap


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compliance with EPAP requirements. A copy of this new guideline can be found on ECON’s website using the same link as was provided for PNG076.

AER’s EPAP Operator’s Handbook Guideline PNG028 makes reference to the AER’s EPAP Operator’s Handbook. It should be reviewed as a means to explore the concepts discussed in the Saskatchewan guideline in more detail. As the operations of operators grow in size and complexity, they may find the more detailed content of the handbook helpful to ensure that the design of their EPAP operation:

1. Recognizes the implications of their more complex operational characteristics. 2. Remains consistent with audit best practice. and 3. Continues to achieve a reasonable level of assurance with respect to measurement and

reporting requirements. A copy of this handbook can be found on AER’s website at:

https://www.aer.ca/compliance-and-enforcement/compliance-assurance/epap-program-components

2.2 Know who your EPAP Change Leader is and how they can help with readiness.

All operators should identify an EPAP Change Leader (ECL). The ECL’s main role is to act as the primary point of contact for your company related to all EPAP on Petrinex concerns and to ensure all individuals affected by these changes are ready for EPAP implementation. The ECL will:

Receive information from ECON and Petrinex with respect to EPAP implementation, and be expected to disseminate and ensure that this information is understood by others at your company who are impacted by the new requirements.

Be invited to attend 1 or more EPAP Change Leader meetings regarding the EPAP program, EPAP reporting on Petrinex, and related readiness activities.

If you are unaware of whom your ECL is or need to identify one, please contact [email protected] .

2.3 Read and fully understand the Saskatchewan EPAP on Petrinex Readiness Guide.

Anyone at your Company (Business Associate - BA) that will be involved in EPAP reporting activities in Saskatchewan needs to fully understand how reporting will be conducted in Petrinex. Examples of individuals affected include:

Those who will be responsible for the creation and submission of the annual EPAP Declaration.

Individuals who will be involved in the investigation of Compliance Assessment Indicators (CAIs).

The person who will be the designated EPAP Primary Contact for your company.

The BA User Security Administrator (USA) at your company who will have to create and assign security roles for users utilizing EPAP functionality in Petrinex.

Any consultants/contractors who will be performing any EPAP- related services for your company. Please see Appendix 10: Definition of EPAP Terms if you are unfamiliar with any of the terms used above. This Saskatchewan EPAP on Petrinex Industry Readiness Guide is an online document that will be regularly updated throughout the readiness phase of EPAP implementation. This guide is meant to keep Industry aware of important information concerning changes in processes and functionality, ECON communications, important dates, and updates to available training. All people who will be involved in EPAP reporting at your company should read this guide and keep current with any updated versions released.

https://www.aer.ca/compliance-and-enforcement/compliance-assurance/epap-program-components



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2.4 Ensure your BA User Security Administrator (USA) creates security roles and sets up users.

The new EPAP tasks will not be included in the existing Petrinex “Comprehensive” or “Read Only” roles. Operators will have to create new security roles for EPAP or add the new tasks to their existing roles. Petrinex does provide templates that can be used to create the new roles. The template roles are comprised of the new EPAP tasks that will likely fit best for most operators; however, the USA has the ability to create custom roles for EPAP, if necessary, to meet individual company needs should the generic templates be insufficient. These new templates will be available when the EPAP functionality is live in Petrinex on April 7, 2016. The USA should start to gather the user information to be keyed in as soon as possible after Petrinex EPAP functionality is available so as to not delay EPAP users from performing their duties. The EPAP role templates for Industry include:

EPAP

EPAP Admin Additional information regarding Petrinex security can be found in Appendix 4: Petrinex Security Overview. An overview of the newly created security role templates and tasks associated with EPAP is provided in Appendix 5: Petrinex User Security Role Templates for EPAP. It should be noted that EPAP users may require access to more than just EPAP functionality. For example, the Query CAI screen provides links to Query Volumetrics and Query Facility Infrastructure provided the user has security access to these functions. Users may also require the ability to generate reports or see notifications. Existing Petrinex security rules regarding confidential wells and facilities can also affect the user’s ability to view certain volumetric data. It is recommended that any users who will need access to the new EPAP security roles on Petrinex also be given the existing Read Only role for your company. This would ensure that users have access to the appropriate query, reporting, and inbox screens.

2.5 Be aware of important dates.

Operators should be aware of the following important dates in regards to EPAP readiness and implementation:

Feb 10, 2016: EPAP Change Leader Meeting in Calgary.

Feb 23, 2016: EPAP Change Leader Meeting in Estevan.

Apr 1, 2016: EPAP implementation in Saskatchewan.

Apr 7, 2016: EPAP functionality in Petrinex is available.

Apr 1 – Nov 30, 2016: Trial Declaration Period is open to Saskatchewan operators.

Mar 1, 2018: Operators must have filed their First Declaration prior to this date.

EPAP Change Leaders will be sent an invitation to attend one of the EPAP Change Leader meetings in either Calgary or Estevan. The meeting in Calgary will take place on February 10, 2016 from 1:15-4:30pm at the Metropolitan Centre downtown. The Estevan meeting is scheduled for February 23, 2016 from 1:00-4:15pm at the SE Regional College. A detailed meeting agenda will be sent to all EPAP Change Leaders at a later date. Representatives from both ECON and Petrinex will be on hand to present an overview of the new measurement requirements, and demonstrate EPAP functionality in Petrinex. It is recommended that at least one representative from each operator attend.


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ECON’s new EPAP directives and guidelines will be effective as of April 1, 2016. On April 7, 2016, users will be able to use the EPAP functionality in Petrinex. On that date, the EPAP production month will be February 2016. CAIs for January and February will have been generated and available to view. These pre-loaded CAIs will give operators an opportunity to begin investigations into potential areas of non-compliance immediately.

From April 1 – November 30, 2016, operators will have the opportunity to submit a trial declaration to ECON. See section 2.8 below for more information about the trial declaration.

All operators that have submitted volumetric data to Petrinex for production months prior to January 2016 must submit their first EPAP declaration to ECON prior to March 1, 2018.

2.6 Ensure your staff members are trained.

Training will be available to assist users in being ready to use the Petrinex EPAP functionality. Specifics about the resources available are listed below:

Saskatchewan EPAP on Petrinex Industry Readiness Guide This guide is an evolving document which will be continually updated as the April 1 ECON implementation date approaches. It is meant to provide useful information and tips to assist Industry with EPAP reporting on Petrinex. Anyone involved with EPAP reporting at your company is encouraged to keep current with the most recent updates to this guide as they become available.

Training Modules All Petrinex functionality has associated web-based training modules available on the Petrinex website under the Resource Centre. Updates to the existing EPAP training modules will be made to include Saskatchewan examples. The updated modules are scheduled to be released in late March 2016; however, because the EPAP functionality between Alberta and Saskatchewan will be the same, users may want to look at the existing training modules earlier. If you currently do not have access to the Petrinex training system, click on the link “Access the Online Training System” at the bottom of the Resource Center tab on the Petrinex website for instructions on how to use the “Self-Registration process (follow link below): http://www.petrinex.ca/17.asp

Tips and Job Aids EPAP Change Leaders will be alerted to new Tips and Job Aids posted to the Petrinex website in the coming months. These can be found on the Petrinex website under Initiatives under the Saskatchewan EPAP Reporting on Petrinex link. Job Aids are created to provide examples, templates, shortcuts, and other information that make using certain functions within Petrinex easier and more efficient. Tips are communications intended to provide information and updates dealing with a variety of Petrinex issues.

Petrinex EPAP Functionality Overview As part of the February EPAP Change Leader meetings, a high level overview on how to use the Petrinex EPAP functionality will be included. This will be based on the screen prints provided in Appendix 2: EPAP on Petrinex Screen Views. The screenshots in the appendix were created for Alberta, but are applicable to Saskatchewan as well.

http://www.petrinex.ca/17.asp


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Online Demonstration Videos New EPAP videos will be created to provide an overview of Petrinex EPAP functionality. These videos will be applicable to both Alberta and Saskatchewan. Information relating to these videos including where to access them will be provided at a later date.

Online Help Online help screens will be available for EPAP functionality in April. While logged into Petrinex, a user can access Online Help on any page by clicking on the Help symbol. Online Help is context sensitive and provides step-by-step “how to” information as well as related background information relating to the page.

2.7 Take the opportunity to test the Declaration Facility Upload file.

Interested operators will have the opportunity to run a sample of the Declaration Facility Upload file in the Petrinex test system at the beginning of March until the end of November, 2016. Operators will be able to create a sample upload file and email it to a Petrinex staff member. The file will be uploaded into the test system by the staff member and the results will be evaluated and sent back to the operator. This allows an operator to ensure that they understand what information is required and that the proper format is being followed. The Petrinex file standard for uploads is CSV. The upload template will be provided ahead of the testing time. Additional information with regard to the process will be provided as we move closer to the availability of this activity. Please see Appendix 8: Instructions for Industry Interoperability Testing for more information.

2.8 Take the opportunity to submit a Trial Declaration.

Operators that have submitted volumetric information to Petrinex prior to January 2016 will have the

opportunity to submit a trial declaration during the period of April 1, 2016 – November 30, 2016. Operators

that are only submitting volumetric information to Petrinex starting in January 2016 or later will be able to

submit a trial declaration within the first year of their first volumetric submission.

ECON highly encourages Industry to submit a trial declaration during this period. Submitting a trial declaration

offers the following benefits:

Operators that submit a trial declaration will be given the opportunity to request a preferred declaration month from ECON.

This is an opportunity to test EPAP operation processes internally before submitting the first declaration.

Operators can take this time to familiarize any affected staff (ex: field operations or production accounting) with new EPAP concepts and procedures.

An opportunity to receive useful feedback from ECON as to the reasonableness of the declaration. In Petrinex, declaration templates are created on the volumetric reporting deadline (around the 18th-22nd of each month). This is the day the EPAP Production Month changes in Petrinex. Interested operators must contact ECON and make them aware of their intention to file a trial declaration. ECON will then set the


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declaration month in Petrinex so that the declaration template can be created at the next volumetric deadline. Once the template is created, the operator can then complete the declaration and submit it to ECON. Operators should make themselves aware of the volumetric deadlines throughout the trial declaration period to ensure the template is created as quickly as possible. If a request for a trial declaration is made shortly after a volumetric deadline, the operator would then have to wait until the next volumetric deadline in order to have its declaration template created. For example, the volumetric deadline for April 2016 is April 22. If a request for a declaration is made on April 23, the operator will have to wait until the next volumetric deadline to have their template created (May 19 in this example). A schedule of these deadlines can be found on the Petrinex website under the Calendars menu (please follow the link below). http://www.petrinex.ca/49.asp



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Summary of Petrinex EPAP Functionality and Support Services 3.0

This section is intended to help Industry understand the components of EPAP functionality in Petrinex along with the related support services that Petrinex offers. All aspects of EPAP, including declarations submissions, CAI investigations, approvals and official communications with ECON, will be conducted solely within Petrinex. Information supporting EPAP activities (volumetrics, facility infrastructure data, etc.) is already stored in Petrinex. This means that EPAP processes will be able to leverage off information that is always current and consistent within the same environment. Please note that the purpose of this section is to provide a high-level overview of the main functional and support areas concerning EPAP on Petrinex. Annotated screen prints of the various EPAP functions in Petrinex can be found in Appendix 2: EPAP on Petrinex Screen Views. As well, please refer to section 2.6 for a list of resources that will provide more detailed training for users. EPAP introduces many new concepts and terms that some operators may not be familiar with. Please see Appendix 10: Definition of EPAP Terms if you are unfamiliar with any of the terms used throughout this section.


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The following table provides a summary of the major functional and support areas associated with EPAP on Petrinex. Each item listed in the overview for each area will be discussed in more detail in the following pages.

SUMMARY OF PETRINEX EPAP FUNCTIONALITY & SUPPORT AREAS

FUNCTIONAL/SUPPORT AREA OVERVIEW

3.1 Audit Program Information Industry sets Primary and Secondary Contact. ECON sets Ministry Contact and Declaration Month.

3.2 Declaration Reporting 3.2.1 Availability and deadlines for the Declaration. 3.2.2 Reporting by Theme. 3.2.3 Attached PDF version of the Declaration. 3.2.4 The EPAP Declaration Facilities Report.

3.3 Compliance Assessment Indicator (CAI) Reporting

3.3.1 Availability of monthly CAIs. 3.3.2 Features to aid in CAI analysis.

3.4 Workflow 3.4.1 Statuses & User Security Roles 3.4.2 Workflow types 3.4.3 Industry Review investigations. 3.4.4 Industry Reviewed Dates vs Regulator Acceptable Dates.

3.5 Dashboard Pulls information from other EPAP functions onto one screen. Allows users to prioritize their EPAP workload.

3.6 User Security Administration Security Administration handled by BA USA.

3.7 User Support Services 3.7.1 Petrinex Service Desk 3.7.2 Petrinex Website 3.7.3 Industry liaison and support (Industry Team at

Petrinex) 3.7.4 Change Management Processes 3.7.5 Learning Resource Centre/Training


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3.1 Audit Program Information

All EPAP menu items can be found under the Audit section in Petrinex. The Audit Program Information item is where an operator sets their Primary Contact information for EPAP. The Primary Contact is the person that the Regulator would contact with any EPAP related questions. The Primary Contact is also listed on the printed version of the EPAP Declaration. An operator will not be able to submit their declaration to the Regulator unless a Primary Contact has been set. Industry also has the ability to set a Secondary Contact. This is an optional field where an operator can list another person that the Regulator can contact in the event the Primary Contact is away or unreachable. The Regulator will use this screen to set the Ministry Contact. The Ministry Contact is the person at or on behalf of the Regulator who is responsible for EPAP related matters for that operator. This is the person the operator should contact with any EPAP questions or concerns. The Regulator also uses this screen to set a company’s Declaration Month (see the Declaration Reporting section below for more information).

3.2 Declaration Reporting

An EPAP Declaration is comprised of 14 Reporting Themes that must be completed by the submitting operator, at least 1 Declaration Signatory to provide executive sign-off for the declaration, and an attached PDF version of the declaration. Once generated, the declaration is available in the Edit EPAP Declaration screen. Subsections 3.2.1 – 3.2.4 will provide an overview of the declaration reporting process.

3.2.1 Availability and deadlines for the Declaration

The timing for a declaration’s availability and the submission deadline is determined by a company’s Declaration Month. The Declaration Month is set by ECON in the Audit Program Information section of Petrinex and covers the 12 month period preceding the end of the assigned month. Once the declaration reporting period has ended, a company has 2 months to submit their declaration to ECON. In Petrinex, the declaration will be created on the volumetric reporting deadline of the month following the Declaration Month (approximately 3 weeks later). The production month in Petrinex is one month behind the actual calendar month. The EPAP Declaration process in Petrinex requires that all volumetric data for the 12 month declaration period be filed before a declaration template can be created. So the EPAP Production Month in Petrinex is not rolled over to the next month until the volumetric reporting deadline has passed. A schedule of these deadlines will be found on the Petrinex website under the Calendars menu (please follow the link below). http://www.petrinex.ca/49.asp Example: The following is an example of the timeline of events that would happen for an operator that has a Declaration Month of October.

October 31 – The declaration period ends. The company’s declaration will cover the previous 12 month period from November 1 – October 31.

Approx. November 18-22 (Petrinex volumetric reporting deadline) – The EPAP Production Month in Petrinex will be changed to October. The company’s EPAP Declaration Template is created and available for edit the following morning.



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December 31 – Deadline to submit the declaration to ECON in Petrinex (i.e. 2 months after the end of the declaration period).

3.2.2 Reporting by Theme

The declaration contains 14 Reporting Themes. Each theme is a measurement/reporting category of related business processes. Operators are required to report on the state of controls that are in place to ensure compliance with ECON requirements for each of these reporting themes. Reporting is at a facility level, meaning that an operator is providing an assessment of the state of controls for each facility that is relevant to the reporting theme. Theme level screens in Petrinex are comprised of a Theme Overview, a Facility List, and a Conclusion. The overview information provides updated facility count totals and reference information intended to clarify the reporting theme’s purpose and objective. Each reporting theme’s facility list is auto-generated in Petrinex. When the declaration is created, Petrinex evaluates which facilities the company operated at the end of the Declaration Period and whether any volumetric submissions were made to these facilities in any month within that period. Based on facility subtype, facilities are then added to the facility lists of any relevant reporting themes. Facilities may not be added or removed manually from the auto-generated list. This ensures accuracy in terms of applicable subtypes, operational statuses and operatorship. For each facility in the list, answers must be provided to 7 Yes/No type control questions that determine the facility’s applicability to the reporting theme, and whether facility and company level controls exist. Total counts are auto-calculated and summarized at the top of the theme screen. The following are the 7 control questions that must be answered for each facility:

Applicable: Is this facility applicable to the reporting theme? (there are certain exceptions for some subtypes)

FL Controls: Are there facility-level controls for this facility?

FL Evaluated: If there are facility-level controls, were they evaluated in this declaration period?

FL Effective: If the facility-level controls were evaluated, were they found to be effective?

CL Controls: Are there company-level controls for this facility?

CL Evaluated: If there are company-level controls, were they evaluated in this declaration period?

CL Effective: If the company-level controls were evaluated, were they found to be effective? If a facility is deemed to be not applicable or has no controls, an explanation must be provided as to why. Default responses to these questions may be set for the entire facility list, allowing the user to focus only on the exceptions to the defaults. There is also the ability to batch upload entire reporting theme facility list responses via CSV. Users also have the ability to sort and filter the facility list by many criteria. This provides the ability to find or focus on specific facilities. Once the facility list is complete, a conclusion must be selected that the operator feels best represents the

state of controls for that reporting theme. The options to choose from are Acceptable, Deficient, Not

Applicable, or Not Evaluated. See ECON’s Guideline PNG028: Initiating & Operating the Enhanced Production

Audit Program (EPAP) for guidance as to which conclusion is appropriate.




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The table below provides a summary of each of the 14 reporting themes found in the EPAP declaration.

SUMMARY OF DECLARATION REPORTING THEMES

Reporting Theme Number/Name Control Objective

1. Facility & Measurement System Design/Installation/Documentation

Ensure that measurement systems are designed and installed in accordance with ECON requirements.

2. Measurement Device Maintenance (Calibration, Inspection & Proving)

Ensure all measurement devices used to determine volumetric data are verified, calibrated, or proven using appropriate equipment and procedures in accordance with ECON requirements.

3. Measurement Device Operation Ensure all measurement devices used to determine volumetric data are operated in accordance with ECON requirements.

4. Sampling & Analysis Ensure that representative samples are collected and analyzed using appropriate equipment and procedures in accordance with ECON requirements.

5. Proration Testing – Oil Wells Ensure testing procedures are performed in accordance with ECON proration testing requirements.

6. Proration Testing - Gas Wells Ensure testing procedures are performed in accordance with ECON proration testing requirements.

7. EFM Records Ensure that all electronic flow measurement systems used in the determination of volumetric data are designed, installed, calibrated, and used in accordance with ECON requirements.

8. Field Records Ensure that all field records accurately reflect flow data and provide an adequate audit trail in accordance with ECON requirements.

9. Trucked Production Ensure that trucking procedures are conducted in accordance with ECON delivery point measurement requirements.

10. Fuel/Flare/Vent Ensure that fuel/flare/vent gas volumes and activities are accurately determined in accordance with ECON requirements.

11. Schematic Ensure that representative drawings are created and maintained in accordance with ECON requirements.

12. Facility Master Data Set Up Ensure that well and facility infrastructure data is accurately set up, maintained, and reported to Petrinex in accordance with ECON requirements.

13. Calculation Factors Ensure that calculation factors required in the accurate reporting of volumetrics to Petrinex are applied in accordance with ECON requirements.

14. Monthly Volumetric Activity Reporting

Ensure that all data is accurate and reported to Petrinex in accordance with ECON requirements.


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3.2.3 Attached PDF version of the Declaration

There is a PDF version of the declaration that must be generated, signed, and attached to the online declaration before it can be submitted to ECON. The PDF version of the declaration is not considered to be complete until all 14 reporting themes have been completed and at least one declaration signatory has been added online. Declaration signatories are created in a separate screen in Petrinex and later added to the online declaration. These are the senior executives that have the responsibility of signing that the assertions made in the declaration are accurate. When the PDF version of the declaration is generated, their names will be added along with a space for their signature and the date signed. The attached PDF declaration must be signed and dated by every signatory listed in the document. The PDF version of the declaration is comprised of the declaration page and 3 supporting attachments:

The Declaration: The declaration includes a number of provided assertions that the executives are attesting to along with spaces for signatures and dates signed.

Attachment A (Summary of Evaluation of Controls): This is a summary of the online responses given for the control questions in the reporting theme facility lists. The following information is provided by theme:

o Counts for how many facilities have FL only, CL only, or both FL and CL controls. o Counts for how many facilities within the FL, CL, or both categories had controls evaluated and

how many were effective. o Counts for how many facilities were not applicable or had no controls. o The reporting theme conclusion.

Attachment B (Facilities not covered by Controls): This is a listing of each facility, by reporting theme, that had a response of either Not Applicable or No Controls along with the explanation that was provided for each online.

Attachment C (Facilities Operated): This is a listing of the total number of facilities operated by facility subtype.

Please note that the declaration has NOT been submitted to ECON until the Submit button has been pressed in the Edit EPAP Declaration screen. At this time the declaration will not be available to edit, but is available as read-only in the Query EPAP Declaration screen.

3.2.4 The EPAP Declaration Facilities Report

Petrinex will only create the official facility list for the declaration on the volumetric deadline of the declaration month; however, users in Alberta wanted to be able to generate a list at any time. Many felt it would be useful in planning audit activities throughout the year. Petrinex created the EPAP Declaration Facilities Report in response to this request. This report can be run at any time and uses the same principles as the declaration generation process in determining which facilities are applicable to the current declaration period and which reporting themes the various facilities should be included in. The facility lists returned in the report are only accurate for the specific date the report is generated. It is important to remember that the report is NOT the official declaration facility list. The only official listings of facilities are those that are included in the declaration that is created at the end of the declaration period. Timing differences may exist between the official declaration and any instance of this report that is run prior to the end of the declaration period.


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3.3 Compliance Assessment Indicator (CAI) Reporting

A CAI is an Indicator, based on the assessment of some information (volumetric, infrastructure, etc.), that there may be a non-compliance event. A CAI does not confirm non-compliance, but merely suggests that something somewhere needs explaining. For example, CAI 176 is triggered when the reported fuel volume for certain facilities is zero for the month. This does not necessarily mean that the reporting is wrong, but that an explanation is needed (for example, the facility could be electric). For a complete listing of CAI numbers and definitions please see Appendix 7: Petrinex Compliance Assessment Indicator (CAI) Numbers for Saskatchewan. CAIs are generated monthly by facility to inform both operators and ECON of potential areas of non-compliance. The generated list of monthly CAIs can be viewed online or by downloading the CAI Report. Both operators and ECON conduct investigations into the causes of various CAI items. More on this process will be covered in section 3.4 pertaining to Workflow. The CAI Report can be downloaded from the Dashboard (discussed in section 3.5) in CSV format or investigated online from the Query CAI screen. Operators may only see those CAIs that pertain to facilities that they operate. Subsections 3.3.1 – 3.3.2 will provide an overview of the CAI reporting process.

3.3.1 Availability of Monthly CAIs.

In Petrinex, CAIs will be generated on the volumetric deadline (approximately the 18th-20th) of each production month. Most CAIs are generated based on triggers associated with volumetric submissions. For this reason, the monthly CAIs cannot be generated until all volumetrics have been filed for that production month.

3.3.2 Features to aid in CAI analysis

The Query CAI screen offers the following features to aid in CAI analysis:

A detailed history of the CAI and facility.

Ability to see which CAIs have been investigated.

Sorting and filtering tools.

Links to other areas within Petrinex.

Access to prior period CAIs. A user will have the ability to drill into the history of each CAI generated for a facility. By clicking a button, a 12 month history for that facility ID and CAI number will be displayed on screen. This history will provide the facility operator, production month, volume, fluid, activity or trigger value and a trigger description. There is also the option to continually add another 12 months of history at a time (from 12-24, 24-36, etc.); allowing users to go back as far in time as the history provides. Both operators and ECON conduct investigations into their particular CAIs/Facilities through the workflow process in Petrinex. Each workflow is assigned a number and a status. These statuses indicate whether an investigation is ongoing or has been completed. Users can see any related workflow numbers and statuses associated with a particular facility ID and CAI number. They will also be able to see if there is an Industry Reviewed Date or Regulator Acceptable Date assigned as well (to be covered in section 3.4). The online screen provides the ability to sort and filter the list by a wide range of criteria. This is particularly helpful in finding a specific CAI or identifying which CAIs are the most problematic. Users can rank which CAIs


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should be addressed first, look for any active investigations, and filter out any CAIs that have already been investigated. Links have also been provided that will take users to other areas of Petrinex without having to exit the Query CAI screen. There are links to volumetric and facility infrastructure information, as well as links to any workflows that pertain to the facility ID and CAI number. The ability to open these links is determined by a user’s security role. Links are not enabled to users who do not already have access to these areas from the menu.

3.4 Workflow

A workflow is a form of communication and documentation relating to a specific topic between the operator and the Regulator (ECON). By providing a means to organize and archive all details relating to a topic, a workflow can be the starting point for a meaningful dialogue between ECON and operators or a means for operators or ECON to conduct their own internal investigations. Users can document all related information pertaining to a created workflow by adding specific facility IDs (if appropriate), saving notes/information to the workflow history, and attaching any supporting documentation. Subsections 3.4.1 – 3.4.4 will provide an overview of the workflow process.

3.4.1 Statuses & User Security Roles

Workflows progress through different statuses over their life cycle. All workflows start with an Open status.

From there, the progression of statuses up to the point of completion is subject to security rules that govern

which stakeholder is responsible for the workflow at the time and which users may edit the workflow. Users

have roles that define their security access to certain EPAP functions. These roles are generally referred to as

the EPAP or EPAP Admin role. See Appendix 5: Petrinex User Security Role Templates for EPAP for

information on EPAP security roles and Appendix 6: Workflow Capabilities for EPAP User Security Roles for

specific details on how EPAP security roles impact workflow capabilities.

Once a workflow is closed or cancelled, it can only be queried (read-only). The workflow cannot be re-opened;

however, there is the ability to copy the existing workflow into a new workflow if needed.

3.4.2 Workflow Types

EPAP workflow topics generally refer to CAIs, Declarations or Noncompliance Events (NCEs), but ECON may also have other general inquiries it wishes to raise a workflow for as well. There are six different workflow types that are specific to a particular EPAP topic. Some are initiated by an operator and some are initiated by ECON. A summary by topic is provided below. Workflow types pertaining to CAIs:

Industry Review (Operator initiated)

Regulator Review (ECON initiated)

CAI (ECON initiated) Workflow types pertaining to Declarations:

Declaration Review (ECON initiated)

BA (ECON initiated)


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Workflow types pertaining to NCEs:

Voluntary Self Disclosure (Operator initiated) Workflow types for General Operator Inquiries:

BA (ECON initiated) The table below provides a brief overview of each workflow type and its purpose.

OVERVIEW OF WORKFLOW TYPES

Workflow Type

Initiated By Workflow Purpose

Industry Review

Industry For Industry to proactively manage monthly CAIs by conducting their own internal investigations. Industry has the option to assign an Industry Reviewed Date and share information with ECON if desired.

Regulator Review

ECON For the ECON to conduct an internal CAI investigation when no additional information from Industry is required. The investigation may incorporate information from an Industry Review (if already existing). ECON has the option to set a Regulator Acceptable Date.

CAI ECON For ECON to conduct a CAI investigation and make an enforceable request for information to Industry when additional information is required. ECON has the option to set a Regulator Acceptable Date.

Declaration Review

ECON For ECON to record all notes, comments, and observations pertaining to the evaluation of a company’s annual EPAP declaration.

BA ECON An enforceable request for information by ECON to Industry. Information may pertain to the evaluation of a declaration, or a general operator inquiry.

Voluntary Self

Disclosure

Industry For Industry to self-disclose an identified noncompliance event to ECON and communicate the steps that will be taken to remediate the issue.

3.4.3 Industry Review Investigations

The Industry Review workflow is perhaps the greatest online tool that operators have when it comes to managing their monthly CAIs. Operators can conduct their own investigations and store them online in Petrinex. Upon completion of the review, an operator can set an Industry Reviewed Date for a period of time up to five years. As mentioned in section 3.3, the Industry Review workflow number, status, and Industry Reviewed Date (if present) are displayed on the Query CAI screen. This allows operators the ability to sort and filter the list of


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CAIs; prioritizing items that still have ongoing investigations and filtering out items that already have Industry Reviewed Dates. Operators also have the option to make an Industry Review workflow viewable to ECON once it is complete. If shared, the Industry Review greatly aids ECON in their investigations. ECON may include the information supplied in the Industry Review as part of their Regulator Review. Provided the information in the Industry Review is satisfactory to ECON, they can set the Regulator Acceptable Date without the need to re-engage the operator. The following table summarizes the features and benefits of an Industry Review workflow.

SUMMARY OF INDUSTRY REVIEW WORKFLOW

Features Details Benefits

Industry Reviewed Date

• Set by Industry. • Allows operator to flag CAI/Facility ID as investigated for a period of time (up to 5 years). • Not the same as a Regulator Acceptable Date.

Proactive management of monthly CAIs.

Multiple Facilities

• Ability to link multiple facilities to one CAI investigation. • Facilities can be added to the review even if they have not yet generated a CAI.

Address multiple facilities relating to a CAI in one investigation.

Templates • Provided for certain CAIs as a guideline regarding information ECON may require to change CAI status to Acceptable.

Maximize likelihood of ECON acceptance.

Attachments • Ability to attach supporting documents. All relevant information for the investigation is online in one place.

Share with ECON

• Option to share investigative work with ECON. Security: Operators may utilize the Petrinex user role security model in determining which users have the ability to share information with ECON.

ECON can leverage off of Industry investigation to set Regulator Acceptable Date.

3.4.4 Industry Reviewed Dates vs Regulator Acceptable Dates

An Industry Reviewed Date is not the same as a Regulator Acceptable Date. Only the regulator (ECON) can determine that a CAI is acceptable for a facility. Until that happens, the Industry Reviewed Date is the means for operators to know that they have completed their internal investigation and do not need to review the CAI again until either the end date expires or they are requested by ECON to provide more information. The Regulator Acceptable Date indicates that the regulator (ECON) has deemed the CAI acceptable for the facilities identified for a future period of time. Because they are two different dates, it is possible for a CAI/Facility combination to have both an Industry Reviewed and a Regulator Acceptable Date.


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3.5 Dashboard

The dashboard pulls information from the other EPAP functions onto one screen. This allows users to effectively manage and prioritize their workload. It is recommended that any users utilizing EPAP functionality use the dashboard as the starting point for EPAP reporting activities. From there, links are provided to other areas. There are four sections provided on the dashboard:

Workflow

Declarations

CAI Reports

CAI Status – Acceptable The following table provides a summary of the information provided on the Dashboard screen including the purpose of each section and links provided to other areas in Petrinex.


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SUMMARY OF DASHBOARD FUNCTIONALITY Provides the ability to prioritize and manage EPAP workload

Sections Purpose Details Links Provided

Workflow To present a prioritized to-do list of outstanding workflow items and to provide a search mechanism for finding workflow items.

• Workflow default sort order is by upcoming due date (date by which a response is required). • Sort order can be changed to sort by Workflow #, Status, Workflow, Type, or CAI #.

• Edit Workflow (active workflows) • Query Workflow (closed workflows)

Declaration To provide a list of the company's current and historical declarations.

• Declaration default sort order is by due date. • Sort order can be changed to sort by Declaration Status (active or closed), Declaration Month, or by the Submitted Date.

• Edit Declaration (active declarations) • Query Declaration (closed declarations)

CAI Reports The CAI Report can be downloaded or queried online by Production Month.

• CAI Reports are listed by production month. • Report is downloadable in CSV format. • Launching point for online query.

• Query CAI

CAI Status - Acceptable

To present a list of CAIs with Regulator Acceptable Dates that are expiring within the next 2 months and to provide a search mechanism for any facility that has been added to an Industry or Regulator workflow.

• Choice between Expiry & Query Modes Expiry Mode (Default): • List is filtered to items with an acceptable date expiring in the next two months. Query Mode: • Can customize search by available filters (CAI#, Facility ID, Workflows, Regulator Acceptable/Industry Reviewed Dates)

• Query Facility Infrastructure • Query Workflow • Edit Workflow (active Industry workflows)


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3.6 User Security Administration & Support

All operators already use and are familiar with Petrinex. All operators currently using Petrinex have a BA Primary and Backup USA (User Security Administrator). The USA is responsible for creating new User Security Roles and assigning these roles to the appropriate users within the company. The USA also creates new user accounts as well. EPAP Change leaders should review the “Recommended Steps to Readiness” in Section 2.0 for information pertaining to the creation of new users and roles.

3.7 User Support Services

Subsections 3.7.1 – 3.7.5 discuss the standard Petrinex user support services available to Industry.

3.7.1 Petrinex Service Desk

Petrinex has fully trained Service Desk personnel to address any questions or concerns relating to Petrinex functionality. Once EPAP is live on Petrinex in April 2016, questions or concerns relating to the use of EPAP functionality on Petrinex will be handled by the Petrinex Service Desk. Questions relating to EPAP Directives and policies will be handled by ECON ([email protected] )

3.7.2 Petrinex Website

Petrinex communication protocols include many different tools available to communicate with Petrinex users, including the Petrinex Website. The website provides stakeholders with access to:

Login to Petrinex

Broadcast Messages

User Tips and Alerts

Calendars outlining Petrinex reporting information and hours of operation

The Petrinex Learning Resource Centre (including access to Training Modules, Job Aids and FAQs)

Service Desk contact information and enhancement suggestion forms

Overview information on Petrinex

Detailed information on current major Petrinex Initiatives

3.7.3 Industry liaison and support (Industry Team at Petrinex)

The Industry Team is funded by Industry and is comprised of a team of senior Industry Subject Matter Experts (SME’s) and a manager. The Industry Team at Petrinex provides:

An Industry voice on the Petrinex management team and Petrinex Steering Committee.

Industry Subject Matter Expert (SME) support to the Petrinex Service Desk and contribution to user training; Petrinex change management and testing; Industry liaison, consultation and communications.

Industry consultation and support for DOE, AER & ECON initiated changes.

Industry support to the Industry Benefits Committee, and as well, to the Industry members of the Petrinex Advisory Committee and Petrinex Steering Committee.

Ongoing focus on enhancing the level of benefits realized by Industry users of Petrinex.

The Industry Team works with Industry and Government committees to identify, prioritize, advocate, and if approved, support implementation of potential Petrinex enhancement projects of benefit to Industry.

The Industry Team is actively engaged in the implementation of EPAP in Saskatchewan. The team also works closely with the EPAP Stakeholder Committee and other groups focused on the needs of EPAP users in Petrinex.



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3.7.4 Change Management Processes

Petrinex is always evolving to meet changing needs and technology. Petrinex Change Management protocols and processes ensure that Industry and Government technological and functionality enhancements are identified, vetted, prioritized, tested and implemented, and communicated in a timely manner that meets stakeholder approved and closely monitored Key Performance Indicators. All Petrinex stakeholder groups collaboratively participate in the Change Management process.

3.7.5 Learning Resource Centre/Training

The Petrinex Learning Resource Centre provides access to Petrinex Training Modules, Job Aids, Tips and Alerts and FAQs. Petrinex has a suite of approximately eighty online training modules and job aids that will include module updates specifically targeted to Saskatchewan EPAP functionality closer to implementation in April.


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Appendix 1: Saskatchewan Communications to Stakeholders

Memorandum: May 13, 2015:

Memorandum

Ministry of the Economy

From: Ed Dancsok Date: May 13, 2015

Assistant Deputy Minister Ministry of the Economy

To: Manager of Saskatchewan Operations Re: Forthcoming Changes to Oil and Gas Measurement and Reporting Requirements in Saskatchewan The Ministry of the Economy (ECON) is performing a comprehensive review of many of the regulatory processes that impact the oil and gas industry in Saskatchewan and intends to update and modernize those processes over the next several years. As part of that review the current regulatory requirements with respect to oil and gas measurement in Saskatchewan were identified as being dated and lacking in detail. As a first step towards regulatory modernization, ECON established an industry consultation committee which included a number of oil and gas measurement experts from industry and other regulatory agencies such as the Industry Measurement Group. The committee determined that Saskatchewan's measurement requirements should be harmonized, to the extent practical, with those that exist in Alberta as represented by Alberta Energy Regulator's Directive 017: Measurement Requirements for Oil and Gas Operations. The committee has completed its review and, based on the comments and advice that was provided, ECON is introducing Saskatchewan's Directive PNG017 - Measurement Requirements for Oil and Gas Operations (Directive 017). To facilitate implementation of the new measurement requirements:

Directive 017 has been made available on ECON's website at: http://economy.gov.sk.ca/NoticeToOperators This version, which contains the measurement requirements for both Alberta and Saskatchewan (differences have been highlighted throughout the document in a tabular format), will not be put into force in Saskatchewan for approximately one year. ECON is providing a one-year grace period to allow industry sufficient time to develop an understanding of the new measurement

http://economy.gov.sk.ca/NoticeToOperators


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requirements and to plan for any required adjustments to field operations. This should ensure compliance once the new requirements come into force.

ECON requests that you review the document in detail over the next few months and welcomes any comments or suggestions with respect to errors, deficiencies, or lack of clarity within the document. Please direct comments by email to: [email protected] ECON intends to respond to comments through a Question and Answer document which will be posted at the website location in the first bullet point. Revisions to Directive 017 may be posted at various times over the next year prior to being put into force.

ECON recognizes that Directive 017 is a comprehensive document since it includes specific measurement requirements and procedures, as well as many examples, diagrams, and industry best practices. To enhance industry's ability to understand the new measurement requirements, ECON plans to provide a condensed summary document in the future. Once completed the summary will also be made available on the website.

ECON will be carrying out regulatory enforcement, including audits and inspections, to ensure compliance with the new measurement requirements in accordance with the following schedule:

a) Each operator must be 25 percent compliant by April 1, 2017. b) Each operator must be 50 percent compliant by April 1, 2018. c) Each operator must be 75 percent compliant by April 1, 2019. d) Each operator must be 100 percent compliant by April 1, 2020.

ECON expects industry to make continuous progress towards being 100 per cent compliant by April 1, 2020, and will require operators to demonstrate their progress throughout the schedule. ECON will consider proposals from operators with respect to how compliance with the schedule can be demonstrated.

Changes have already been incorporated into Petrinex, effective for the April 2015 production month reporting, to facilitate the adoption of new facility subtypes that are required to track and monitor compliance with the new measurement requirements. Compliance with these new reporting requirements will be enforced immediately.

Given the scheduled phase-in of the new measurement requirements over the next five years, it should not be necessary to exempt any existing facilities from the new requirements other than the exemptions already provided in Directive 017. Current operations that are not compliant with existing measurement requirements in Saskatchewan will be subject to immediate enforcement. Harmonizing oil and gas measurement and reporting requirements with those in Alberta will enable the adoption of an Enhanced Production Audit Program (EPAP) in Saskatchewan in the near future. ECON intends to begin planning the adoption of a Saskatchewan EPAP, similar to the EPAP currently employed in Alberta, before the end of the 2015-16 fiscal year.



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Please ensure that all staff in your company that may be impacted the new requirements are aware of the enhancements to both the measurement and reporting requirements. ECON encourages you to review the document and provide any comments by email to: [email protected] Sincerely,



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Letter to Operators: September 4, 2015:

September 4, 2015 Manager of Saskatchewan Operations Ministry of the Economy Re: Future Changes to Oil and Gas Measurement and Reporting Requirements and Implementation of EPAP in Saskatchewan In May 2015, the Ministry of the Economy (ECON) announced plans to update and modernize oil and gas measurement and reporting requirements in Saskatchewan by harmonizing, to the extent practical, with those that exist in Alberta. ECON introduced Saskatchewan Directive PNG017: Measurement Requirements for Oil and Gas Operations, which was developed in consultation with Industry and was posted for comment on ECON's website at: http://economy.gov.sk.ca/NoticeToOperators. ECON intends to give regulatory force to the new measurement requirements effective April 1, 2016, but will phase-in regulatory enforcement over the following four years in accordance with the following schedule: a. Each operator must be 25% compliant by April 1, 2017; b. Each operator must be 50% compliant by April 1, 2018; c. Each operator must be 75% compliant by April 1, 2019; and d. Each operator must be 100% compliant by April 1, 2020. Enhanced Production Audit Program (EPAP) ECON is also initiating steps towards implementing EPAP in Saskatchewan, which has already been implemented in Alberta and is supported by functionality in Petrinex. EPAP was implemented in Alberta in 2010 to raise the level of compliance with reporting and measurement requirements and to help operators improve their measurement and reporting processes. EPAP requires a senior executive from each operator to declare, on an annual basis, the state of compliance with respect to measurement and reporting at the facilities they operate. Evidence to support that declaration consists of having designed controls to ensure compliance, operating those controls and conducting evaluations of those controls to ensure that they are effective. If the evaluation of their controls determines that the

http://economy.gov.sk.ca/NoticeToOperators


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controls are not effective, the declaration would indicate that the operator has a plan to remedy the deficiencies. ECON plans to adopt EPAP, along with the functionality in Petrinex, for Saskatchewan operators effective April 1, 2016. Current plans are to encourage voluntary submission of trial declarations during the April 1, 2016 through November 30, 2016 period and to require submission of the first enforceable declarations for all operators commencing in 2017. Industry Consultation The Saskatchewan version of EPAP will be similar to Alberta's program. As part of finalizing the Saskatchewan program, ECON plans to consult with Industry regarding the development of a Saskatchewan version of Directive 076: Operator Declaration Regarding Measurement and Reporting Requirements. ECON has contracted Corvelle Consulting (Corvelle) to assist with EPAP development and implementation in Saskatchewan. ECON and Corvelle are organizing an Industry consultation meeting tentatively scheduled for early October 2015 in Calgary to review a draft version of Saskatchewan Directive PNG076. Previous participants in the Industry consultation group established to develop Saskatchewan Directive PNG017 will be invited to participate in the consultation process for Directive PNG076 as well. If anyone else from Industry is interested in participating, please email Yogi Schulz at Corvelle Consulting at [email protected] or call (403) 249-5255. Petrinex Change Leaders As a communications tool to ensure that all operators are well informed with respect to implementation plans, including training and timing for EPAP in Saskatchewan, ECON is working with Petrinex to establish an EPAP Change Leader contact list for Saskatchewan. Change Leaders will be the primary point of contact for information and communications related to EPAP and are responsible for ensuring that all the operator's staff are kept informed of the new requirements. Each operator is asked to provide contact information for your Saskatchewan EPAP Change Leader as soon as possible to Mallory Brown at Petrinex by emailing [email protected] or calling (403) 297-5217. ECON looks forward to your participation in the successful implementation of Oil and Gas Measurement and Reporting Requirements and EPAP in Saskatchewan. Please direct any questions to the PNG support desk at 1-855-219-9373 or email [email protected]. Doug MacKnight Acting Assistant Deputy Minister, PNG cc: Garry Leach, EPAC Brad Herald, CAPP Warren Waldeggar, SHOP





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Appendix 2: EPAP on Petrinex Screen Views

Note: The screen views provided here were created for Alberta; however, the functionality is the same for

Saskatchewan.

Edit Declaration Screen - Expanded

1. Header Row

Displays the Declaration Month/Year, Due Date, Status, and the Operator’s Total Facility Count

The Status is automatically updated when all sections of the Declaration are complete.

The Total Facility Count is auto-generated by Petrinex and cannot be changed. This count is based on the operatorship of record, applicable EPAP facility subtypes, and volumetric activity in the past 12 months at the time the declaration is generated.


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2. Complete All Sections

There are sections for 14 Reporting Themes, Declaration Signatories, and the Attached Signed Declaration

Click the ‘+’ symbol to open the working area for any section.

3. Reporting Quick View

Each Reporting Theme has a Quick View that displays a theme’s Status, Facility Counts by Control Category (Facility-Level, Company-Level, or Both) and Conclusion.

The Status is updated automatically when the reporting theme is completed.

Facilities are automatically placed in the various Control Categories based on the responses provided in the Facility List (found in the working area of the theme).

The Conclusion is automatically updated based on the selection made in the working area of the theme.

4. Declaration Signatories

There is a separate menu option in Petrinex to create Declaration Signatories that include an executive’s name, title, and dates they are active. Once created, these names are attached to the Declaration in the Declaration Signatories section of this screen.

The Status is automatically updated when a signatory has been attached.

5. Attached Signed Declaration

This is the section in which the PDF version of the Declaration is attached. The PDF version must be signed by all Declaration Signatories listed on the document.

6. Print

Click the ‘Print’ button to generate the PDF version of the Declaration.

Once generated, the PDF can be found in the user’s Petrinex Inbox.

7. Submit

Click the ‘Submit’ button to submit the Declaration to the Regulator for review. This button is unavailable until the Declaration status is Complete.

8. Download

Click the ‘Download’ button to generate a CSV (spreadsheet) list of all 14 Theme Facility Lists. Facility List responses are also included if existing.

Once generated, the CSV can be found in the user’s Petrinex Inbox.

This report is beneficial in creating a CSV batch upload of Facility List responses.


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Declaration Reporting Theme

1. Theme Information

Information is provided to help provide clarity for the theme.

Includes Theme Name, Description, Control Objective, Regulatory References, Applicable Facility Subtypes, and if there are any Exceptions to reporting for any subtypes.


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Facility subtypes are color coded. This replaces the question on the old declaration, “Have you evaluated the controls for at least one facility for every subtype in this theme?”

o Black subtypes indicate there are no facilities with that subtype in the facility list.

o Red subtypes indicate there are facilities with that subtype, but none have a “Yes” response for either FL or CL controls evaluated.

o Green subtypes indicate there are facilities with that subtype, and at least one of them has a “Yes” response for either FL or CL controls evaluated.

2. Theme Facility List

All facilities applicable to the theme are in the Facility List.

List is auto-generated by Petrinex based on facility subtype and whether there was any volumetric activity in the reporting period.

Facilities cannot be added or removed from the list.

There are 7 control questions (checkboxes) that require a Yes or No response for each facility.

The 7 questions (checkboxes) determine if a facility is Applicable to the reporting year, whether it has Facility-Level or Company-Level Controls (or both), and whether these controls were Evaluated and found to be Effective.

Each facility requires responses to the control questions.

A check in the box indicates a Yes response, blank is a No response.

An optional Reference field is provided for internal use.

A Description must be provided if a facility is either Not Applicable or has No Controls.

Facility list responses may be batch uploaded by CSV.

All Facility Lists may be downloaded in a CSV spreadsheet using the Download button on the previous screen.

3. Facility List Sorting & Filtering

The list can be sorted by any of the headings in the list.

The list can be filtered to search for specific facilities or groups of facilities using the text fields or drop-down fields located beneath each heading.

4. Facility Name & Location

Hovering over any Facility ID with the mouse will highlight the row. The name and location of the Facility ID are displayed at the top of the Facility List.

5. Set Defaults

Defaults can be set for each of the 7 control questions and applied to the entire facility list (either on screen or within a CSV batch upload).

6. Conclusion

Once the facility list is complete with no errors or warnings, a Conclusion may be selected.


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Options for the conclusion are Acceptable, Deficient, Not Applicable, and Not Evaluated.

7. Quick View Row

Once information in the theme is saved, the Quick View row at the top of the theme is updated.

The Quick View provides summary counts of the responses provided in the Facility List along with the conclusion that was set and the status of the theme.


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Request Workflow

1. Workflow Type

For Industry the choices are Industry Review or Voluntary Self Disclosure.

2. CAI or NCE

The CAI field is automatically displayed if Industry Review is selected as the workflow type.

The NCE (Non-Compliance Event) field is automatically displayed if Voluntary Self Disclosure is selected.

The drop-down provides a complete listing of either CAIs or NCEs.

3. Production Month

The production month can be for the current or a prior period. It cannot be future dated.

4. Related Workflow #

If the current workflow is related to another investigation, the other workflow number can be entered here for reference purposes.

This is an optional field.

5. Submit

Submit moves the user to the Edit EPAP Workflow screen to complete the submission.


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Edit Workflow


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1. Workflow Details

This section displays the unique key information of the workflow.

The workflow number is assigned here when accessed from the request screen.

A New Status can be set here.

The Due Date is found here if assigned by the Regulator.

The Industry Primary Contact and Regulator Contact are listed on each workflow.

The user who created the workflow and the user who last updated the workflow are displayed.

2. Facility Details

Can attach multiple facilities to one workflow.

Facilities may be attached whether they have generated a hit for the CAI or not as long as they have an appropriate subtype for the CAI number.

The “Set Acceptable” fields are available on an Industry Review once the New Status is set to Closed or Finished.

An Industry Reviewed Date may be assigned for a period of up to 5 years.

Setting an Industry Reviewed Date is optional. The date may be set for all, none, or only some of the attached facilities.

Dates listed with an asterisk under either the Regulator Acceptable or Industry Reviewed columns were set by a different workflow.

3. New Message

Comments and messages are entered here.

Once the workflow is submitted, the message is added to the History at the bottom of the page and can’t be removed.

Comments entered can be Saved to WIP in order to make changes later.

Templates are available in the Drop-Down. Selecting a template allows the user to standardize a response.

4. Attachments

All supporting documentation can be attached to the workflow.

All attached files are given a Document Description that becomes the link to opening the file.

Files may only be deleted from an Industry Review or a Voluntary Self Disclosure that has not been submitted to the Regulator yet.

5. History

This is the ongoing log of submitted messages.

Each submission is date and time stamped along with the name of the user and the operator/ministry that made the submission.

History log entries cannot be deleted.


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Query CAI (Summary View)

1. CAI Summary

Each row represents an occurrence of a CAI for a facility in that production month.

2. Sorting & Filtering Options

The list can be sorted by any of the headings in the list.

The list can be filtered to search for specific CAI occurrences using the text fields or drop-down fields located beneath each heading.

Multiple filters can be applied at one time.

When filters are applied, the message at the top will read “Filtering is ON”.

Consec. Hits refers to the number of consecutive months that the CAI has been generated for that facility.

Regulator Acceptable refers to the Regulator Acceptable Date. The existence of a date means the regulator has deemed the CAI acceptable for that facility until the listed date expires. Items with an acceptable date are initially filtered out in the default settings.

The Regulator Workflow (Reg W/F) column shows the workflow number for any regulator initiated workflow (Regulator Review or CAI) that has been raised for that CAI/Facility.

Industry Reviewed refers to the Industry Reviewed Date. The existence of a date means that the operator has investigated the CAI/Facility and does not need to investigate it again until the listed date expires.

Industry Workflow (Ind W/F) column shows the workflow number for any industry initiated workflow (Industry Review) that has been raised for that CAI/Facility.

The Regulator/Industry Status (Reg Stat & Ind Stat) columns display the status that the workflow is in (if existing). Users can filter by a specific status or by the following options:


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o All (All statuses) o All Active (Include only active workflows) o Blanks (Filter out items with a regulator workflow)

The Category & Weight columns are the Regulator defined categories and weights. The category of a CAI can be Error, Conditional, or Anomaly. The weights are numerical and range in seriousness from 1-4, 4 being the most serious.

3. Workflows

Information is provided about any existing workflows (Regulator or Industry initiated) that pertain to the CAI and facility.

Any workflow number created by the Regulator, the workflow’s status, and the Regulator Acceptable Date (if existing) are displayed.

Any Industry Review workflow number, the workflow’s status, and the Industry Reviewed Date (if existing) are also displayed.

Active Workflow numbers will continue to be displayed in future production months until they are completed.

Completed Workflow numbers with Regulator Acceptable or Industry Reviewed dates will continue to be displayed in future production months until the date expires.

Completed Workflow numbers without Regulator Acceptable or Industry Reviewed dates will only be displayed in the month they were created for.

4. Facility ID Link

Clicking on a Facility ID will open the Query Facility Infrastructure screen in a separate window.

5. Production Month Link

Clicking on the Production Month for a particular row will open the Query Volumetrics screen (for that facility ID and production month) in a separate window.

6. Workflow # Link

Clicking a workflow number in the Regulator Workflow column will open the Query EPAP Workflow screen in a separate window.

Clicking a workflow number in the Industry Workflow column will open either the Query or Edit EPAP workflow screen depending on the status of the workflow and the User Security Role.

7. New Link

New is displayed if there are no existing Industry Review workflows for the CAI and facility for the current production month.

Clicking ‘New’ will open the Request EPAP Workflow in a separate screen.


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Query CAI (with CAI Details View)

1. View

Click the ‘View’ button on any row in the Summary View to open the CAI Details section for that CAI and facility.

2. CAI Details

The CAI Details section displays a 12 month history of the CAI for that facility including the Activity, Product, Volume, and Trigger information pertaining to the CAI occurrence.

3. Workflow # Link

Any workflows created by the Regulator or by Industry are listed in the history.

Clicking the workflow number opens the same workflow screens as described in the previous screens.


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4. Operator Changes

If the facility has changed operators, the previous operator’s history can be seen in the CAI Details.

Any workflow numbers belonging to the previous operator cannot be opened by the current operator.

5. Next 12 Months

Clicking the ‘Next 12 Months’ button will add another 12 months of history for the CAI and facility.

Users can continue to add another 12 months of history back to the first record of the CAI for the facility.


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Dashboard

1. Workflow

This section of the Dashboard lists workflows by order of Due Date.

Intended to help prioritize which workflows require immediate attention.

Can sort or filter the list by any of the headings.

Click ‘Go’ for any workflow to open either the Query or Edit EPAP Workflow screens (depending on the workflow status and user security role).

2. Declarations

Provides a history of declaration submissions.

Any outstanding or open declarations are listed first in order of Due Date.

Click ‘Go’ for any declaration to open either the Query or Edit EPAP Declaration screens (depending on the declaration status and user security role).

3. CAI Reports

CAI Reports are listed in order of Production Month.

Clicking the ‘Download’ button for any production month will create a CSV report of the CAIs for the production month selected.


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The reports can be found in the user’s Inbox.

Clicking the ‘Query’ button for any production month will open the Query CAI screen for the production month selected in a separate window.

All information found in the Query CAI screen, including details pertaining to activity, product, volume, and triggers, is provided in the CSV report for the selected month only.

4. CAI Status – Acceptable

The primary purpose of this section is to display any CAI and Facility that has a Regulator Acceptable Date expiring within the next 2 months (Expiry Mode).

The secondary purpose of this section is to provide a search mechanism by which a user could search for any of the BA’s facilities that have been associated with either a Regulator or Industry CAI investigation workflow, regardless of whether the facility was assigned a Regulator Acceptable or Industry Reviewed Date. (Query Mode)

The list can be sorted or filtered by any of the column headings.

Clicking any workflow number will open the Query EPAP Workflow screen in a separate window.


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Appendix 3: About Petrinex

1. Petrinex Governance, Operations and Administration

Petrinex is a joint strategic organization supporting Canada’s upstream oil and gas industry and is represented by Government (Alberta Energy, the Alberta Energy Regulator and the Saskatchewan Ministry of the Economy); and Industry (represented by the Canadian Association of Petroleum Producers (CAPP) and the Explorers and Producers Association of Canada (EPAC)). Petrinex is governed and managed in a manner reflecting its multi-stakeholder sponsorship:

Petrinex Governance and Organizational Structure

*Executive representatives from DOE, AER, ECON, CAPP, EPAC, Federal government, etc. **Senior representatives from DOE, AER, ECON, CAPP, EPAC, etc. ***Line management representatives from DOE, AER, ECON, CAPP, EPAC, etc.


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2.0 Industry Representation and Opportunities for Input

2.1 Industry Team at Petrinex

The Industry Team is made up of the Industry Manager who participates as part of the Petrinex Management Team and the Petrinex Steering Committee, and a small number of senior Subject Matter Experts that represent Industry’s interests and contribute Industry expertise to the ongoing management, operations and evolution of Petrinex. The Industry Team, along with ECON and the Petrinex Team, is also charged with ensuring that all stakeholders are prepared for EPAP reporting activities on Petrinex which is scheduled for April 2016.

While the initial development and ongoing operations of Petrinex are funded by Government, Industry funds the Industry Team. This funding is provided through voluntary payment initiated by an annual billing of Alberta and Saskatchewan producers, the amount of which is based on the number of wells each company operates.

With respect to EPAP, the Industry Team is responsible to help ensure that:

Petrinex EPAP Functionality is ready for Industry

o The Industry Team contributes Industry Petrinex subject matter expertise to consultation workshops (with ECON and other Industry representatives) with respect to the new directives and guideline created for the implementation of EPAP in Saskatchewan.

o The Industry Team will play a key role in testing Petrinex functionality associated with EPAP.

o More broadly, the Industry Team works with the rest of the Petrinex Team and ECON to ensure the benefits identified for Industry for the EPAP on Petrinex functionality are delivered.

Industry is ready for EPAP reporting on Petrinex

o The Industry Team is responsible for working as part of the Petrinex Team and with ECON to ensure that Industry is prepared for the reporting of EPAP on Petrinex. As such, the Industry Team is actively involved in the following activities:

Communication with stakeholders in Industry (including messages and meetings with EPAP Change Leaders, and the evolution of the EPAP on Petrinex Industry Readiness Guide).

Development of content for training modules and job aids.


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2.2 EPAP Stakeholder Committee

The EPAP Stakeholder Committee (ESC) is a committee chaired by the AER and comprised of EPAP users, consultants, AER PAT members and Petrinex Industry Team representatives. The ESC (and its Compliance Assessment Indicator (CAI) and Themes Subcommittees) has been used since 2011 as a venue for obtaining Industry input with respect to the operation of EPAP and EPAP systems and for vetting proposals for changes to EPAP.

With the focus for EPAP being on harmonization between jurisdictions, ECON is planning on joining the existing committee in 2016. This means that the EPAP Stakeholder Committee will continue to be the primary venue of communication for EPAP related matters for both Alberta and Saskatchewan.

2.3 Industry Benefits Committee

The Industry Benefits Committee (IBC) is a committee sponsored by CAPP and EPAC that is also open to company representatives that are not members of these associations. The IBC has met monthly since 2000. The IBC is a user group of managers or senior subject matter experts that provide Industry input on the evolution of Petrinex with the objective of assuring that Industry obtains the most benefits possible from Petrinex.

2.4 Key Contact Information

For EPAP Policy related queries, contact Blake Linke, Compliance Program Manager, Saskatchewan Ministry of the Economy, 306-787-6494, [email protected]

For Petrinex queries related to EPAP , contact Steve Freeman, Industry Coordinator, 403-297-2311, [email protected]

2.5 Key Petrinex Terms

Petrinex has concepts and processes that may be new terminology to some users. The Key Terms described below are more general terms that all Petrinex users should be familiar with. Terms more specific to EPAP users can be found in Appendix 2: EPAP on Petrinex Screen Views and Appendix 10: Definition of EPAP Terms.

Inbox and Notifications: The Petrinex Inbox contains electronic notifications that are sent by e-mail to Business Associates. Petrinex uses notifications to inform BA users of successful submissions, errors, and other items or processes requiring action. Notifications are triggered by:

o User actions initiated online o Calendar events o Data changes o Validation processes o System processes

All notifications are sent to a BA user’s external email address as well as to the BA’s Petrinex Inbox. This guarantees that all notifications are received by the BAs. All users can access notifications in their Petrinex BA Inbox. If there are any attachments to the notification, the notification will include a secure hypertext link, accessible only by the appropriate users. If a user is accessing this information from an external email address, the user is brought directly to the Petrinex login page




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after clicking on the hyperlink. After logging into Petrinex, the user is brought directly to the applicable Petrinex page.

Contacts: The Contacts button on the Petrinex menu identifies the user who made the submission you are viewing, along with that user’s contact information, including e-mail address and phone number.

Online Help: Online help is available on any Petrinex page. The Online Help system is a convenient utility that:

o Provides immediate, context-specific information. o Provides detailed step-by-step instructions. o Provides a glossary and index of key words.

Tips: Tips contain valuable advice including work-arounds for using Petrinex most effectively. Tips are accessible from the Petrinex public website

Alerts: Alerts contain instructive work-arounds to resolve short-term problems in Petrinex. Alerts are accessible from the Petrinex public website.


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Appendix 4: Petrinex Security Overview

Petrinex contains effective processes to access information. Immediate access to definitive, shared data is available through Petrinex query and report functionality. Petrinex users can access this information, subject to authorization and confidentiality considerations. Reports can be viewed, printed, and downloaded electronically

Conceptually, Petrinex security is managed at three levels:

1. The System Level: This level is managed by the Petrinex Team in conjunction with Alberta Energy (DOE). This level is focused on assuring that only those parties that are entitled to have access to Petrinex are able to gain access. Parties that are entitled to access Petrinex are called Business Associates (BA’s). To become a Petrinex BA, companies must demonstrate through a formal application process that they have a legitimate requirement to access Petrinex (e.g. they are required to report to the AER, the DOE or ECON through Petrinex.) In order to utilize the Petrinex application a user must have a valid Business Associate code, user id, and password. The Petrinex team has implemented Industry best practices around its technical architecture to ensure that only authorized BA users can access Petrinex.

2. The BA Level: This level is managed by Petrinex and is focused on ensuring that BAs using Petrinex are only able to view data that they are entitled to see. Certain information is considered confidential and falls under the Petrinex “Security Blanket”. In regards to EPAP, this level of security pertains to:

Audit Program Information: A BA may only edit or view its own contact information. This information is also viewable to the Regulator.

CAI: A BA may only view its own CAIs. If a facility changes operatorship, the new operator will be able to see the previous operator’s name in the CAI history details. All CAIs are viewable to the Regulator.

Declaration: A BA may only edit or view its own declarations. All declarations, even those that are incomplete, are viewable to the Regulator. The Regulator has this ability in the event a BA requires guidance in completing their declaration.

Declaration Signatories: A BA may only edit or view its own declaration signatories. Declaration signatories are viewable to the Regulator.

Workflows: A BA may only edit or view workflows pertaining to that BA (whether created internally or by the Regulator). If a facility changes operatorship, the new operator will not be able to see workflows created by the previous operator pertaining to that facility. Whether the BA or the Regulator can view or edit certain workflow information is determined by the status of the workflow (See Appendix 6: Workflow Capabilities for EPAP User Security Roles).

Dashboard: A BA may only view its own dashboard information. Some of this information is also viewable to the Regulator (i.e. Workflows would be dependent on statuses).

3. The User Level: This level is managed by the BA and is focused on permitting the BA to assign specific access rights to individual users (see Appendix 5: Petrinex User Security Role Templates for EPAP). The assignment of user access “rights” for a BA is managed by the BA’s User Security Administrator (BA USA). Only one BA USA and one Backup BA USA can be assigned for each BA.


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Petrinex security assurance is provided through:

Industry best practice security technical and business design.

Industry best practice security operations and maintenance.

Regular third party penetration testing.

Regular review by the Alberta Office of the Auditor General.

In addition to the above, Petrinex is SysTrust certified. SysTrust certification is an extremely comprehensive internationally recognized annual certification process managed by accredited public accounting firms. Click on the Systrust logo on the homepage of the Petrinex Website for more information.


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Appendix 5: Petrinex User Security Role Templates for EPAP

In Petrinex, for security and data integrity purposes, users can only perform specific “tasks” identified with

specific “roles” associated with the use of Petrinex functionality. The BA USA within each company is

responsible for assigning these roles to its users.

Petrinex creates certain standard roles which are logical groupings of tasks for users of the various Petrinex

functions. EPAP functionality will not be added to the existing Petrinex roles. Instead, BAs will have to

create their own EPAP user security roles. Petrinex does provide two role templates pertaining specifically

to EPAP; the EPAP and EPAP Admin roles. These templates contain a list of EPAP tasks that Petrinex felt

would work best for most operators for the purposes of creating new security roles.

The operator’s BA USA also has the ability to create customized roles to fit individual business needs. New

EPAP roles can be created using any combination of tasks. For example, in regards to EPAP, an operator

may want to customize roles pertaining to Declaration or CAI reporting only.

In designing customized EPAP roles, the USA should consider what other tasks that are not specific to EPAP

a user may need (ex: Inbox, Reports & Queries, Query Volumetrics, or Query Facility Infrastructure). As was

stated in Section 2.0 of the guide, it is recommended that any EPAP users who do not already have any

assigned roles on Petrinex be given the Read Only role in addition to any EPAP roles. This would ensure that

users have access to the appropriate functions.

USAs should also keep in mind that existing Petrinex security rules regarding confidential wells and facilities

can also affect the user’s ability to view certain volumetric data.

More detailed information regarding User Access and User Security Roles is available for all BA USAs in the

Petrinex Online Training Modules. The following modules are recommended for review:

2.2 – Manage User Roles

2.3 – Manage User ID’s and Access

The chart below displays the tasks associated with the EPAP role templates that will be available in Petrinex

as of April 7. There are a few differences between the EPAP Admin and the EPAP templates. The Admin

template has the ability to change Workflow communication statuses to share information with the

Regulator. It also grants the ability to edit or submit the Declaration, create or edit Declaration Signatories,

and change the Primary or Secondary contact information. Most of these areas are read-only (by way of

query) for the EPAP template.


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PETRINEX ROLE TEMPLATES FOR EPAP FUNCTIONALITY

Role Task Description

EPAP Admin

EPAP Dashboard Screen allows user to organize EPAP workload (Workflows, Declarations, CAI Reports, CAI Acceptable Status)

Query CAI Screen provides ability to view, investigate, and manage CAIs month to month.

Request EPAP Workflow Allows user to create a new Workflow communication.

Edit EPAP Workflow - Admin

Allows user to add, change, or respond to certain information in a Workflow communication and change the status such that the information is shared with the Regulator.

Query EPAP Workflow Provides Read-Only access to a Workflow communication.

Edit EPAP Declaration Allows users to update or submit an EPAP Declaration.

Query EPAP Declaration Provides Read-Only access to an EPAP Declaration.

Edit Declaration Signatories

Allows users to create or edit Signatories for the EPAP Declaration.

Query Declaration Signatories

Provides Read-Only access to Signatories for the EPAP Declaration.

Edit Audit Information Allows the user to add or edit the Primary/Secondary contact information and view the Regulator Contact and Declaration Month information.

Query Audit Information Provides Read-Only Access to the Audit Information.

EPAP EPAP Dashboard Screen allows user to organize EPAP workload (Workflows, Declarations, CAI Reports, CAI Acceptable Status)

Query CAI Screen provides ability to view, investigate, and manage CAIs month to month.

Request EPAP Workflow Allows user to create a new Workflow communication.

Edit EPAP Workflow Allows user to add, change, or respond to certain information in a Workflow communication.

Query EPAP Workflow Provides Read-Only access to a Workflow communication.

Query EPAP Declaration Provides Read-Only access to an EPAP Declaration.

Query Declaration Signatories

Provides Read-Only access to Signatories for the EPAP Declaration.

Query Audit Information Provides Read-Only Access to the Audit Information.


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Appendix 6: Workflow Capabilities for EPAP User Security Roles

The following is a list of Workflow Types that require Industry input. Input may be in the form of initiating the workflow, or responding to a Regulator inquiry.

Industry Review (Industry initiated)

Voluntary Self Disclosure or VSD (Industry initiated)

BA (Regulator initiated)

CAI (Regulator initiated) Workflow communications are made up of the following components which may be added or changed throughout the active life of the workflow:

Workflow Details: Editable details for a workflow include the Title, Workflow Type, CAI or Non-Compliance Event Number, Workflow Status, and whether there is a Related Workflow Number (previously created workflow relating to the same issue). Most details are only editable at the time the workflow is created.

Facility Details: This is where one or more active Facility IDs can be added to the workflow. For the Industry Review workflow, this is also where the Industry Reviewed Date can be set upon closing the workflow.

New Message: The new message section is used to add information to the dialogue history. An Industry user can select a template as a basis for communication with the Regulator for certain items. Once a message appears in the history log, it is visible to all Regulator users and those users at the company who have permission to view the workflow.

Attachments: Users can attach various documents to a workflow as supplementary information that supports the topic.

Both the Regulator and Industry have roles that define their security access to certain EPAP functions. These roles are generally referred to as the EPAP or EPAP Admin role. For Industry, both the EPAP and EPAP Admin role may create any workflow type that is initiated by Industry; however, a user’s right to edit a workflow beyond the initial Open status is dependent on the user’s security role. There are some statuses in which only the EPAP Admin role can edit. As well, only the EPAP Admin role may response to a Regulator initiated request. In general, if the current status of a workflow can be transitioned to one in which information is shared with the Regulator, only the EPAP Admin role will have edit rights. A flowchart for each Workflow Type is provided below that illustrates how the workflow moves through various statuses. A table is also provided to show what actions can be performed by each role (EPAP & EPAP Admin) in each of these statuses. The BA and CAI workflow type are listed together as both utilize the same flowchart.


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The purpose of the Industry Review is to allow operators to proactively manage their own CAIs and set an Industry Reviewed Date. CAIs with an Industry Reviewed Date can then be filtered out of the Query CAI screen. Operators can also choose to share the review with the Regulator. If and when the Regulator

Workflow Type Role From Current

Status

Can Edit Details &

Facilities

Can Add New

Message

Can Attach

Files

Can Set Industry

Reviewed Date

Can Change

Status To

Industry Review EPAP Admin/

EPAP

Open Yes Yes Yes No Cancelled,

Pending

EPAP Admin Open Yes Yes Yes Yes Finished

EPAP Admin Open Yes Yes Yes Yes Closed

(Regulator

Viewable)

EPAP Admin/

EPAP

Cancelled No No No No N/A

(Can't change

status)

EPAP Admin Pending Yes Yes Yes No Cancelled,

Open

EPAP Admin Pending Yes Yes Yes Yes Finished

EPAP Admin Pending Yes Yes Yes Yes Closed

(Regulator

Viewable)

EPAP Admin Finished No No No No Pending


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reviews the workflow, they can set a Regulator Acceptable Date without the need for additional information from Industry (provided the information in the workflow is satisfactory). As the graphic illustrates, an Industry Review starts in an Open status. From this status, Industry users with

either the EPAP or EPAP Admin user security role can edit the workflow. Once details have been added, the

status can be changed to either Pending or Cancelled.

When an Industry Review is in a Pending status, only a user with the EPAP Admin user security role may

edit the workflow. From Pending the status may be set back to Open, or on to Cancelled, Closed, or

Finished. The Pending status is restricted to users with the Admin role because setting the status further to

Closed makes the information viewable to the Regulator.

When the status is set to either Closed or Finished, the user may set an Industry Reviewed Date for any or

all facilities attached to the workflow. A Closed status makes the workflow details viewable to the

Regulator while a Finished status keeps the workflow details viewable only the company. If the operator

wishes to make the details viewable to the Regulator, it must set the workflow status back to Pending,

which clears the previously set Industry Reviewed Dates on the facilities. From Pending, the status can then

be set to Closed and the Industry Reviewed Dates must be re-entered.

In general, once an Industry Review workflow is in a Finished, Closed or Cancelled status, it is no longer

editable. The details can be copied into a new workflow if needed. The only exception to this rule is the

ability to transition a workflow in a Finished status back to Pending. This is the only editable function within

the workflow; other details cannot be edited. Once the workflow is back in a Pending status, it is once again

editable.


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The purpose of a Voluntary Self Disclosure (VSD) workflow is for Industry to self-disclose an identified noncompliance event and communicate the steps that will be taken to remediate the issue to the Regulator.


Status

Can Edit Details &

Facilities

Can Add New

Message

Can Attach

Files

Can Change

Status To

Voluntary Self

Disclosure

EPAP Admin/

EPAP

Open Yes Yes Yes Cancelled,

Pending

EPAP Admin/

EPAP

Cancelled No No No N/A

(Can't change

status)

EPAP Admin Pending Yes Yes Yes Cancelled,

Open

EPAP Admin Pending Yes Yes Yes Regulator

(send to

Regulator)

EPAP Admin Industry

(Regulator

request for

information)

Yes Yes Yes Regulator

(response to

Reglator)


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As the graphic shows, a VSD is initiated by Industry and starts in an Open status. From this status, users with either the EPAP or EPAP Admin user security role can edit the workflow. Once all details have been added, the status can be changed to Pending, Cancelled, or Regulator. From Pending the status may be set back to Open, or on to Cancelled or Regulator. An operator would set the status to Regulator when they have included all information pertaining to the current NCE and their remediation plan. Only an Industry user with the EPAP Admin role can edit a workflow in Pending status or set the workflow status to Regulator. When a VSD workflow is first created, the Regulator will not be able to edit or query the workflow until the first time it has been set to a Regulator status. Once in a Regulator status, the Regulator can edit the workflow. The workflow will always be available for the Regulator to query from that time on as well. If the Regulator is satisfied with the remediation plan in the workflow, they can set the status of the workflow to Closed. If the Regulator needs more information, they will add an information request to the workflow and set the status to Industry with a due date that the operator must respond by. Once completed, the appropriate users at the operator will receive a notification that a request for information has been made by the Regulator. Regulator users cannot edit a workflow when it is in an Industry status; a Regulator user with the EPAP Admin role can set the status back to Regulator if the change to Industry was made in error. A back and forth dialogue between Industry and the Regulator will continue until all necessary information has been added. This begins a back and forth dialogue. When the Regulator is satisfied, they will set the status to Closed. Only the Regulator may close a VSD workflow. Once a VSD workflow is in a Closed or Cancelled status, it is no longer editable. The details can be copied into a new workflow if needed. Both the Regulator and Industry can query a closed workflow. If Industry cancels a workflow prior to ever setting the status to Regulator, it cannot be queried by the Regulator. Industry cannot cancel a VSD workflow once the status has been set to Regulator for the first time.


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BA or CAI workflows are created by the Regulator and sent to Industry. They are enforceable requests for information. The CAI workflow is a request pertaining to a CAI investigation while a BA workflow is a request for information either pertaining to a declaration or a general operator inquiry. As the graphic illustrates, the workflow starts in an Open status. From Open, the workflow can be transitioned to any of the other available statuses – Industry, Regulator, Closed, or Cancelled. In order to request information from a company, the Regulator user will input the request in the Messages section of the workflow, set the status to Industry, and set a due date that the operator must respond to by. Once completed, the appropriate users at the operator will receive a notification that a request for information has been made by the Regulator.


Status

Can Edit Details &

Facilities

Can Add New

Message

Can Attach

Files

Can Change

Status To

BA & CAI EPAP Admin Industry

(Regulator

request for

information)

Yes Yes Yes Regulator

(response to

Reglator)


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A Regulator user cannot edit a CAI workflow when it is in an Industry status; however, in the event that the workflow is set to an Industry status by mistake, a Regulator user with the EPAP Admin role can set the status back to Regulator. Only Industry users may edit and add details to a BA or CAI workflow when it is in an Industry status. The Industry user will provide the requested information (comments, attachments, etc.) and set the workflow status to Regulator. Only an Industry user with the EPAP Admin user security role may edit the workflow when it is in an Industry status. Once the workflow is in a Regulator status, it is once again editable by Regulator users. The Regulator will review the information provided by Industry. If additional information is required, the Regulator will make another request and set the workflow status back to Industry. This back and forth dialogue, changing from Regulator to Industry and vice versa, can happen as many times is as necessary for the Regulator to get all of the required information to close the investigation. When the Regulator is satisfied that all needed information is present, the workflow status can be set to Closed. For a CAI workflow type, the Regulator may also set a Regulator Acceptable Date at this time. The workflow number and Regulator Acceptable Date can be seen by Regulator and Industry users in both the Query CAI screen and the CAI Report. The workflow can be queried by both parties as well. Once a BA or CAI workflow is in a Closed or Cancelled status, it is no longer editable. The details can be copied into a new workflow if needed.

Petrinex EPAP on Petrinex Industry Readiness Guide

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Appendix 7: Petrinex Compliance Assessment Indicator (CAI) Numbers for Saskatchewan

The table below displays a list of the CAI numbers for Saskatchewan in Petrinex. For the most part, this list is the same as the list of CAI

numbers in Alberta. Most of the differences have to with changes to applicable Facility Subtypes in some CAIs. However, there are 3 new CAIs

in Saskatchewan that do not exist in Alberta. As well, there are a few CAIs in Alberta that have been removed for Saskatchewan because current

volumetric/infrastructure edit rules in that jurisdiction prevent the CAI from being generated.

LIST OF SASKATCHEWAN CAI NUMBERS IN PETRINEX CAI # CAI Name & Definition Category Weight Facility Subtypes

103 Unacceptable Oil Proration Factor - Proration Battery Oil proration factor of 1.0000 has been reported for a proration facility.

Error 4 322, 327, 344, 362, 363, 364

104 Unacceptable Gas Proration Factor - Proration Battery Gas proration factor of 1.0000 is reported for a proration battery.

Error 4 322, 327, 362, 363, 364

105 Unacceptable Water Proration factor - Proration Battery Water proration factor of 1.00000 has been reported for a proration battery.

Error 4 322, 327, 344, 362, 364

106 Inappropriate Production Volumes - Well-Level (VME0037) Condensate production has been reported for a well linked to a Gas Multi-well proration SW Saskatchewan battery.

Error 4 363

108 Unacceptable Hours on Production/Injection - Abandoned/Suspended /Ministry Suspended Well Well hours on Production or Injection have exceeded the number of hours from the start of the month up to the abandonment/suspension date for a well that was either Abandoned or Suspended during the current month.

Error 4

109 Multiple Gas Dispositions - Gas Group Battery (VME0038) Multiple destination points have been reported for gas dispositions at a Gas Group battery.

Error 4 361

116 Directive PNG017 Chapter 5 Approval, Gas Receipts - Single-Well Battery Gas has been reported as a receipt into a Single-well Oil or Gas battery.

Conditional 4 311, 325, 351


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117 Directive PNG017 Chapter 5 Approval, Gas Receipts - Proration Battery Total gas (including gas equivalent if applicable) reported as a receipt (including purchase receipts) into a proration battery is greater than 75% of the battery's gas dispositions (fuel + flare + vent + sales).

Conditional 4 322, 327, 362, 363, 364

118 Directive PNG017 Chapter 5 Approval, Oil Receipts - Oil/Heavy Oil Proration Battery Total oil receipts at an Oil or Heavy Oil proration battery is greater than 1000 m3 and greater than 100% of the total oil produced.

Conditional 4 322, 327, 344

119 Excessive Venting - Gas Facility (VME0035) Total gas vented is greater than 30 103m3.

Conditional 4 351, 361, 362, 363, 364, 621

120 Excessive Flaring - Gas Facility (VME0034) Total gas flared is greater than 30 103m3.

Conditional 4 351, 361, 362, 363, 364, 621

121 Excessive Venting - Oil/Heavy Oil Battery (VME0035)Total gas vented is greater than 30 103m3.

Conditional 3 311, 313, 314, 316, 321, 322, 325, 326, 327, 344

122 Excessive Flaring - Oil/Heavy Oil Battery (VME0034) Total gas flared is greater than 30 103m3.

Conditional 3 311, 313, 314, 316, 321, 322, 325, 326, 327, 344

123 Low Solution Gas Conservation Efficiency - Oil/Heavy Oil Battery The calculated Solution Gas Conservation Efficiency percentage is less than 90% for an Oil or Heavy Oil battery with production > 30.0.

Conditional 3 311, 321, 322, 325, 326, 327, 344

125 Questionable Fuel Volume - Facility Fuel usage is greater than +/- 75% of the expected Fuel for that facility subtype.

Anomaly 4 311, 321, 322, 325, 326, 327, 351, 361, 362, 363, 364, 611, 621

129 No Inventory Reported - Oil/Heavy Oil Battery No inventory reports for active Oil or Heavy Oil facilities (excluding SHUTIN facilities or where all wells are SHUTIN).

Anomaly 4 311, 321, 322, 325, 326, 327, 344

130 Excessive Oil Allocation Factor- Custom Treating Facility/Clean Oil Terminal Oil proration factor reported for a facility deviated from unity (1.00000) by more than +/- 5% for a Custom Treating Facility or Clean Oil Terminal.

Anomaly 2 611, 671, 673, 675


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135 Excessive Gas Proration Factor (4) - Proration Battery Gas proration factor deviated from unity (1.00000) by +/ 50%.

Anomaly 4 322, 362, 363, 364

136 Excessive Gas Proration Factor (3) - Proration Battery Gas proration factor deviated from unity (1.00000) by +/- 20% to +/- 50%.

Anomaly 3 322, 362, 363, 364


Anomaly 2 322, 362, 364


Anomaly 1 322, 362, 364

143 Low Gas/Oil Ratio - Heavy Oil Battery The calculated Gas/Oil Ratio (GOR) is less than or equal to 2 m3 gas/m3 oil for a Heavy Oil battery.

Anomaly 1 325, 326, 327, 344

144 Low Gas/Oil Ratio - Oil Battery The calculated Gas/Oil Ratio (GOR) is less than or equal to 5 m3 gas/m3 oil for an Oil battery.

Anomaly 1 311, 321, 322

147 Identical Production Volumes Reported - 6 Month Duration - Battery Identical production volumes have been reported for 6 months. (Oil, Gas or Water)

Anomaly 1 311, 313, 321, 322, 325, 326, 327, 344, 351, 361, 362, 363, 364

148 Blending Concerns - Oil/Heavy Oil Battery The variance in density between the oil produced by the wells linked to an Oil or Heavy Oil battery and the Condensate reported as a receipt into the battery may not have been accounted for through the reporting of a Shrinkage volume.

Anomaly 2 311, 321, 322, 325, 326, 327, 344

149 Blending Concerns - Gas Battery The variance in density between the fluid produced by the wells linked to a Gas battery and the oil reported as a receipt into the battery may not have been accounted for through the reporting of a Shrinkage volume.

Anomaly 2 351, 361, 362, 363, 364


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150 Questionable Use of Destination Codes - Disposition Disposition codes (e.g.: Petrinex jurisdictions Miscellaneous (MC) codes, well Unique Identifier (UID), or other Non-Petrinex jurisdictions) have been used to report a disposition out of a facility.

Anomaly 4 311, 313, 314, 316, 321, 322, 325, 326, 327, 344, 351, 361, 362, 363, 364, 401, 402, 403, 404, 405, 406, 407, 611, 671, 673, 675

151 Questionable Use of Destination Codes - Receipt Receipt codes (e.g.: Petrinex jurisdictions Miscellaneous (MC), well Unique Identifier (UID), or other Non-Petrinex jurisdictions) have been used to report a receipt into a facility.

Anomaly 4 311, 313, 314, 316, 321, 322, 325, 326, 327, 344, 351, 361, 362, 363, 364, 401, 402, 403, 404, 405, 406, 407, 501, 503, 506, 510, 611, 621, 671, 673, 675

152 Invalid Gas Metering Difference - Battery Gas metering difference has been calculated by Petrinex for a battery.

Error 4 311, 313, 322, 325, 326, 327, 344, 351, 361, 362, 363, 364

153 Invalid Water Metering Difference - Battery Water metering difference has been calculated by Petrinex for a battery.

Error 4 311, 313, 322, 325, 326, 327, 344, 351, 361, 362, 363, 364

154 Invalid Oil Imbalance - Battery Oil imbalance has been calculated by Petrinex reported for a battery.

Error 4 311, 313, 321, 322, 325, 326, 327, 344, 351, 361, 362, 363, 364

155 Excessive Oil Proration Factor (4) - Oil Proration Battery Oil proration factor deviated from unity (1.00000) by +/ 40%.

Anomaly 4 322

156 Excessive Oil Proration Factor (3) - Oil Proration BatteryOil proration factor deviated from unity (1.00000) by +/- 15% to +/- 40%.

Anomaly 3 322

157 Excessive Oil Proration Factor (2) - Oil Proration Battery Oil proration factor deviated from unity (1.00000) by +/- 10% to +/- 15%.

Anomaly 2 322

158 Excessive Oil Proration Factor (1) - Oil Proration Battery Oil proration factor deviated from unity (1.00000) by +/- 5% to +/- 10%.

Anomaly 1 322


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159 Excessive Oil Proration Factor (4) - Heavy Oil Proration Battery Heavy Oil proration factor deviated from unity (1.00000) by +/ 45%.

Anomaly 4 327, 344

160 Excessive Oil Proration Factor (3) - Heavy Oil Proration Battery Heavy Oil proration factor deviated from unity (1.00000) by +/- 35% to +/- 45%.

Anomaly 3 327, 344


Anomaly 2 327, 344


Anomaly 1 327, 344

163 Excessive Water Proration Factor (4) - Proration Battery Water proration factor deviated from unity (1.00000) by +/ 50%.

Anomaly 4 322, 362, 364

164 Excessive Water Proration Factor (3) - Proration Battery Water proration factor deviated from unity (1.00000) by +/- 20% to +/- 50%.

Anomaly 3 322, 362, 364


Anomaly 2 322, 362, 364


Anomaly 1 322, 362, 364

167 Excessive Water Proration Factor (4) - Heavy Oil Proration Battery Water proration factor deviated from unity (1.00000) by +/ 45%.

Anomaly 4 327, 344

168 Excessive Water Proration Factor (3) - Heavy Oil Proration Battery Water proration factor deviated from unity (1.00000) by +/- 35% to +/- 45%.

Anomaly 3 327, 344


Anomaly 2 327, 344


Anomaly 1 327, 344

171 Missing Gas Volume Crude Oil/Heavy Oil - Well-Level (VME0041) Oil/Heavy Oil production at a well is greater than 15 m3, without a corresponding gas volume for a crude oil well.

Error 4 311, 313, 314, 316, 321, 322, 325, 326, 327, 344


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176 Zero Fuel Volume - Facility Fuel usage is zero.

Anomaly 4 311, 313, 321, 322, 325, 326, 327, 351, 361, 362, 363, 364, 611, 621

177 Excessive Water Allocation Factor - Custom Treating Facility Water proration factor reported for a facility deviated from unity (1.00000) by more than +/- 10% for a Custom Treating Facility.

Anomaly 2 611

178 Questionable Use of STINVADJ Storage inventory adjustment over 10.0 103m3 for all product types.

Anomaly 2 501, 505, 506, 511, 516, 517, 519

179 Questionable Use of INVADJ Inventory adjustment over 10.0 (for gas 10.0 103m3 for oil 10.0 m3).

Anomaly 2 204, 207, 208, 210, 213, 311, 313, 314, 316, 321, 322, 325, 326, 327, 344, 351, 361, 362, 363, 364, 371, 401, 402, 403, 404, 405, 406, 407, 501, 503, 504, 505, 506, 507, 510, 516, 517, 518, 519, 611, 621, 671, 673, 674, 675, 701, 703, 906, 907

180 Questionable Use of LDINVADJ Load Inventory Adjustment over 10.0 (for gas 10.0 103m3 for oil 10.0 m3) for all products. This only applies to wells (excluding gas) using well count, not individual wells.

Anomaly 2


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Appendix 8: Instructions for Industry Interoperability Testing

Industry Interoperability Testing Scope

Industry Interoperability Testing (IIO) provides BA’s the opportunity to submit batch files to the Petrinex Team for the purpose of testing. In regards to EPAP, the only batch file available for testing is for providing the detailed facility information that is needed for each Declaration Theme.

Note: Industry will not be engaged in testing Petrinex’s online functionality; this will be performed by the Petrinex Industry Team.

Each BA will have to assess how much, if any IIO testing they will conduct. The Petrinex Team has the

following expectations in regards to testing:

All operators that wish to participate in testing will submit IIO test files to better understand what information is required in completing a declaration Reporting Theme and to ensure correct formatting.

An upload template along with instructions for completing the upload file will be published to Industry in advance of the testing window. The exact date of publication is to be determined, but it is anticipated the file will be made available in February 2016.

IIO Testing Window

The Petrinex Industry Team will accept files for IIO testing starting at the beginning of March 2016 until the

end of November 2016.

IIO Testing Procedures

IIO test files will be submitted in CSV format. Each test file submission along with the IIO transmittal form

(see below), is to be emailed to [email protected] with EPAP IIO Testing in the Subject Line. If

the transmittal form is incomplete or not included the batch submission will not be processed. The file will

be sent back to the BA with a request for the additional required information.

Once the batch is processed the BA will be sent an e-mail with:

The processing results.

A detailed explanation of any problems encountered.

Recommendations, as appropriate on what was needed to successfully process the file.

The e-mail will include attachments, as appropriate, including the transmittal form with completed actual

test results section and any Petrinex generated additional outputs or validation results.



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INDUSTRY INTEROPERABILITY TRANSMITTAL FORM

Test # (For Petrinex use only)

Company Name:

Date:

Company BA ID:

Contact Name:

Telephone:

Contact Email:

Media: Email :

CD/Disk

USB Drive

File Name:

File Format: CSV

XML

Production Month(s):

Batch Processes Included:

EPAP Declaration Themes

Comments/Expected Results:

Actual Results:


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Appendix 9: Instructions for Industry Training

Overview

As mentioned in Step 2.6 of the Recommended Steps to Readiness, the Petrinex Team uses a number of approaches to help operators ensure their users are fully trained in how to use Petrinex. These include:

EPAP Change Leader Meetings: Sessions are planned to take place in Calgary and Estevan. The Calgary session is scheduled for February 10, 2016 from 1:00-4:30pm at the Metropolitan Centre downtown. The Estevan session is scheduled to take place on February 23, 2016. The time and venue are still to be determined.

These sessions are intended to provide an overview of the new EPAP program in Saskatchewan, demonstrate the Petrinex EPAP functionality, and provide information on additional readiness activities. EPAP Change leaders will receive more details as soon as they are available.

Petrinex Resource Centre: The following learning resources are accessed through the public Petrinex website at http://www.petrinex.ca/

o Online Training Modules: Training modules provide information and “hands-on” instruction for all aspects of Petrinex, from general overview to the specifics of each function. Modules include test questions and practice in a simulated environment that has the same look and feel of Petrinex. By completing exercises within the module, learners are evaluated in terms of their understanding of the function.

In regards to Saskatchewan EPAP, several updated training modules will be released to help users understand the new functionality on Petrinex. Training Modules will be available on the Petrinex Online Training System for SK users starting at the end of March 2016.

o Job Aids: Job Aids are compiled to provide examples, templates, shortcuts, tips and information that make using Petrinex easier and more efficient. Unlike the Training Modules, Job Aids do not include learner evaluation.

o Tips/Alerts/FAQs: These communication vehicles provide information and instruction for dealing with a variety of Petrinex user issues. Tips and Alerts are catalogued for quick and easy reference.

o Online Help: After logging in, a user can access the Online Help related to any Petrinex page by clicking on the HELP symbol. Petrinex Online Help is context sensitive and provides step-by-step “how to” information as well as related background and tips for that page. EPAP related online help will be available as of April 7, 2016.

o Training Videos: New EPAP videos will be created to provide an overview of Petrinex EPAP functionality. These videos will be applicable to both Alberta and Saskatchewan. Information relating to these videos including where to access them will be provided at a later date.



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Instructions for Accessing the Petrinex Training Modules.

There is a Self-Registration process to access to the online Petrinex Training system. For information on how to fill out the Self-Registration form go to http://www.petrinex.ca/17.asp and click on the link entitled “Access the Petrinex Online Training System”.



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Appendix 10: Definition of EPAP Terms

The following list of definitions contains terms that are used within this document. However, this is not a

comprehensive list of terms. Please refer to Directive PNG076, ECON’s guideline for Implementing and

Operating the Enhanced Production Audit Program (EPAP), and the AER’s EPAP Operator’s Handbook for

additional definitions.

Definitions:

Business Process: A collection of related, structured tasks that achieve a specific business goal.

Compliance Assessment Indicator (CAI): An Indicator, based on the assessment of some information

(volumetric, infrastructure, etc.), that there may be a non-compliance event. A CAI does not confirm

non-compliance, but merely suggests that something somewhere needs explaining.

Company-Level (CL) Controls: Controls that apply to all or many of an operator’s facilities. They are typically

designed and applied centrally at a company-wide level.

Control: A process designed to provide a reasonable level of assurance that the underlying business process is

operating as designed. In an EPAP context, a control ensures compliance with the Regulator’s measurement

and reporting requirements.

Control Deficiency: The state that exists when controls do not provide a reasonable level of assurance with

respect to the achievement of compliance with the Regulator’s measurement and reporting requirements. The

reason for the deficiency can exist in either the controls or the underlying business process. The deficiency can

exist in either the control or the underlying business process.

Declaration Month: The last month of the 12 month reporting period that the Declaration covers.

Declaration Signatory: A senior executive who holds provincial authority to direct resources to execute and

measure progress of the evaluations of controls, and remediation of deficiencies.

EPAP Declaration: An operator’s senior executives declare annually as to the state of their infrastructure (i.e.

controls) in ensuring compliance with the Regulator’s measurement and reporting requirements. The

Declaration includes reporting by facility on the existence (or absence) of controls, the extent to which

controls have been evaluated, and the degree to which controls have been found to be effective.

Evaluation of Controls: A process by which an operator evaluates the effectiveness of the design and

operation of a control in addressing the risk of noncompliance. The evaluation of controls may include

assessing the underlying business process.

Facility-Level (FL) Controls: Controls designed to operate at the facility level. A facility-level control may apply

to a specific facility only or the identical control may be independently operated at many similar facilities.

Industry Reviewed Date: A date set by the operator that states that a CAI pertaining to a specific facility has

been explained and requires no further investigation until that time. This date is assigned in an Industry

Review workflow.


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Non-Compliance events (NCE’s) for Measurement and Reporting: Measurement and reporting events that

the Regulator has determined are in non-compliances with respect to the Regulator’s measurement and

reporting requirements. This can be at a facility or company level.

Reasonable Level of Assurance: “Level of Assurance” is the degree of confidence one has in a statement; a

“reasonable” level of assurance certainly does not mean absolute assurance, and might not even mean a “very

high” level of assurance, but it is enough to make it comfortable, for all practical purposes, for senior

executives to sign their EPAP declaration. Exactly what that level is depends on many factors, including the

executive, the organizational culture, and the resources required to increase that level of assurance.

Regulator Acceptable Date: A date set by the Regulator that states that a CAI pertaining to a specific facility

has been deemed acceptable until that time. This date is assigned in a Regulator Review or CAI workflow.

Remediation: a process, effected by an operator’s management, to:

1. Correct control deficiencies identified by the operator during the evaluations of controls, and 2. Correct deficiencies identified by the Regulator.

Reporting Theme: A measurement and/or reporting category that may encompass several related business

processes, related measurement, and reporting requirements. All reporting themes are listed on Attachment A

of the EPAP declaration. For each reporting theme, operators are required to develop, operate, evaluate, and

remediate, if required, controls that mitigate the risk of noncompliance with the associated Regulator’s

requirements.

Voluntary Self-Disclosure (VSD): An operator’s self-disclosure of a noncompliance. Details of the Regulator’s

VSD policy and related process are described in Section 14 of Directive PNG076.

Workflow: Petrinex functionality to manage the interaction and flow of information between the Regulator

and an operator. A workflow is form of communication and documentation relating to a specific topic between

stakeholders. In EPAP, workflow topics generally refer to CAIs, Declarations or Non-Compliance Events.

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