The Petroleum Registry of Alberta

The Petroleum Registry of Alberta Energizing the flow of information

Special Registry/Industry Q&A Session

ALLOWABLE COSTS SUBMISSIONS

February 9, 2010

The Petroleum Registry of Alberta

AGENDA• Introduction/Opening Comments

• Background

• Allowable Costs 2009 - What’s Changed?

– AC2 – Capital & Operating Cost Claims

– AC3 – Allowable Costs Reallocations

– AC4 – Not Applicable

– AC5 – Custom Processing Fees Paid

• Step by Step Allowable Cost Processes

– AC2

– AC3

– AC4

– AC5

– Request Allowable Costs Reports

• Sunday Openings for Allowable Cost Season

• Training & Other Sources of AC Information

• Questions

The Petroleum Registry of Alberta

Background• These changes reflect the second and final phase of

the previously announced Alberta Royalty Framework changes for Allowable Costs (the first phase incorporated the AC1 adjustments in early 2009).

• The Registry changes for Phase II (AC2-5) went live effective February 4th, 2010.

• The Department of Energy implementation is scheduled for the weekend of February 13th, 2010.

• Submissions to PRA will be accepted and processed, however will not be ‘confirmed’ until after February 13th.

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Allowable Costs 2009 – What’s Changed?

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What’s Changed – AC2?For Production Year 2009 and Onward:

•AC2 is used to report both capital and operating costs for the year.

•All FCC’s are required to report operating costs using the AC2.

•Operating & capital costs must be allocated to working interest owners even if the costs are zero for the year.

•Capital and operating costs can be allocated to other delivering (ERCB) facilities.

•Custom Processing Adjustment Factor (CPAF) can be reported for capital & operating costs.

AC2 2009 screen has two views:

Capital Cost& Operating Cost

The Capital Cost view is the same as pre 2009 AC2 data with the addition of Allocations to Other Delivery Facilities. These allocations to other delivery facilities are for situations when some of the AC $ are applicable to other ERCB facilities within the same royalty network.

The Operating Cost view contains data previously submitted on the AC4. (AC4 is not valid for 2009 & forward)

For 2009 & forward all FCC’s must submit Operating Costs.

Allocations to WIO, Other Delivery Facilities & CPAF sections are new to Operating Cost reporting

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What’s Changed – AC3?

For Production Year 2009 and Onward:

•AC3 used to reallocate capital and operating costs to other BAs (royalty clients).

•AC3 used to reallocate capital and operating costs to other ERCB facilities.

•Custom Processing Volumes cannot be reallocated.

The 2009 AC3 reallocates both the capital & operating $ from the AC2

You can allocate to more facilities or to another BA (WIO)

CPAF volumes cannot be reallocated effective 2009.

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What’s Changed – AC4?

For Production Year 2009 and Onward:

•The AC4 is not valid.

•All operating costs are reported using the AC2 starting 2009 and forward.

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What Has Changed – AC5?

For Production Year 2009 and Onward:

•AC5 has only one view available called Custom Processing Fees Paid.

•AC5 no longer includes Energy Adjusted Gas Equivalent Volume.

•AC5 no longer requires the type of custom processing (excess capacity, compressing, gathering, and processing) to be reported.

•AC5 no longer requires the exception type.

The 2009 AC5 is simplified from previous years’ submissions.

There is only one type of cost allowed:

Custom Processing Fees Paid.

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Step by Step Allowable Costs

Screens

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AC2 – Allowable Capital & Operating Costs

Clicking on Edit AC2 on the Registry menu opens up the Edit Capital Costs - AC2 screen.

Enter the FCC ID and year or click the lookup

Using the FCC lookup select the FCC you want to Edit & Click OK

The selected FCC data is displayed

Click Go.

Screen will open to Capital Cost view asking if you want to copy the data from the previous year.

Click OK

Due to the size of this screen/form it will be shown in separate pieces for the rest of this presentation.

The first section includes the Header Information.

Next is the Capital Cost Allowance Calculation section. In this case the closing costs from last year’s data has been copied into the Opening costs for Cumulative Allowable Capital and Allowable Capital Costs.

This section includes inputs fields for Land & Average Spare Parts Inventory

We now have the Capital Additions/Adjustments and Allocation to Working Interest Owners and Allocations to Other Delivery Facilities sections.

Allocations to WIO do not have to be the same on the Capital & Operating view but they both must add to 100%.

Allocations to Other Delivery Facilities are new. This section must be blank or add to 100%.

The final sections of the Capital Costs View include the Custom Processing Adjustment Factor Calculation for Capital Costs and Contact Information.

The Contact Name and Phone Number have been displayed as the loggedIn user, but are editable. The Date Prepared is the current date.

Custom Users do not have to be the same in the Capital & Operating View however the Total Facility Throughput must be.

Once you have input all the applicable data on the Capital View

Click Validate to see if you have any errors

Here are a couple of new messages not applicable prior to 2009.

Blue messages are warnings and submissions can proceed.

Allocations to other facilities may be rejected by DOE, in which case the % rejected will be allocated to ERCB facility the FCC is linked to.

Red items are errors that must be corrected before submitting.

Note you cannot submit the AC2 until all Red errors are cleared on the Capital & Operating Views

Clicking on the beside the View, allows you to select the Operating Cost View. This view will also be shown in separate pieces for this presentation.

The first section includes the Header Information.

Next is the Operating Cost Allowance Calculation and Other Allowables sections. When you change the view to Operating Costs, you will receive a number of error messages as the information has not been entered.

You must input a number (which can be zero) in the following fields:

Standard Allowable Operating Costs

Co-Generation Utilities

Green House Emission Compliance Costs

The next sections are Operating Cost Allowance Allocations to Working Interest Owners and Operating Cost Allowance Allocations to Other Delivery Facilities.

You must input Allocations to Working Interest Owners that add to 100% when combined with the Operating Cost CPAF%.

Allocations to Other Delivery Facilities are for situations when some of the AC $ are applicable to other ERCB facilities within the same royalty network. These allocations must be blank or add to 100%

Lastly, The Custom Processing Adjustment Factor Calculation for Operating Costs and Contact Information.

You can enter different CPAF information for Operating Costs that is different than the Capital CPAF data but the Total Facility Cost Centre Throughput for Operating & Capital must be the same.

Once you have finished inputting your data on the Operating View Click Validate

Blue messages are warnings and submissions can proceed.

Allocations to other facilities may be rejected by DOE, in which case the % rejected will be allocated to ERCB facility the FCC is linked to.

Red items are errors that must be corrected before submitting.

Note you cannot submit the AC2 until all Red errors are cleared on the Capital & Operating Views

Once you have corrected all your errors on both the Capital & Operating Views, click Submit. You will then see the Successful Submission message.

Remember all submissions are unconfirmed until they have been validated and returned as Approved by the DOE.

Once the DOE has approved your AC2 submission you will receive an email notification from the Registry.

The DOE may reject or partially reject your AC2 submission. Details regarding rejections can be found in Ministry Invoices and Statements

Clicking on Query AC2 on the Registry menu opens up the Query Capital Costs AC2 screen.

Enter the FCC ID and year or click the lookup then Click Go

The AC2 query opens on the Capital Cost View

Only the FCC operator or WIO’s named on the AC2 can query the AC2 data.

Only Confirmed data can be queried.

To see the Operating Cost View data used the dropdown to change the view

If you are the operator of the FCC and you have edit authority you can use the Edit button to change from Query to Edit.

Here is the AC2 Query Operating View

Only the FCC operator or WIO’s named on the AC2 can query the AC2 data.

To see the Capital Cost View data used the dropdown to change the view to Capital Cost

If you are the operator of the FCC and you have edit authority you can use the Edit button to change from Query to Edit.

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AC3 – Allowable Costs Reallocations

Clicking on Edit AC3 on the Registry menu opens up the Edit Allowable Costs Reallocations – AC3 screen.

Enter the FCC id and year or click the lookup

The first section includes the Header Information.

Input the applicable data.

You can reallocate both Capital & Operating Allowances from the AC2 to other Delivery Facilities or to other BAs.

Always Validate before Submitting your data.

Once you have corrected any errors Click Submit you will then see the Successful Submission message.

Remember all submissions are unconfirmed until they have been validated and returned as Approved by the DOE.

Once the DOE has approved your AC3 submission you will receive an email notification from the Registry.

The DOE may reject or partially reject your AC3 submission. Details regarding rejections can be found in Ministry Invoices and Statements

Clicking on Query AC3 on the Registry menu opens up the Query Allowable Costs Reallocations – AC3 screen.

Enter the year, FCC ID, and

From BA ID or click the lookups

The AC3 Query data is available to those BA’s named on the submission

(the From BA/submitter and the To BA).

Only Confirmed AC3 data can be queried.

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AC4 –Operating Costs

AC4 is not valid for 2009 and onwards.

When you Click on Edit AC4 on the Menu it will open the Edit Operating Costs – AC4 page however

When the year is 2009 and you click Go you get an error message

“AC4 is not valid for year 2009 and forward use AC2 to report Operating Expenses.”

AC4 is not valid for 2009 and onwards.

When you Click on Query AC4 on the Menu it will open the Query Operating Costs – AC4 page however

When the year is 2009 and you click Go you get an error message

“AC4 is not valid for year 2009 and forward use AC2 to report Operating Expenses.”

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AC5 – Custom Processing Fees Paid

Clicking on Edit AC5 on the Registry menu opens up the Edit Custom Processing Fees Paid - AC5 screen.

Enter or confirm the production year and

Click Go

Based on the year selected the appropriate view(s) will be available.

For 2009 and onwards only the Custom Processing Fees Paid View is valid

Input the applicable data

Click Validate to see if you have any errors

Then Click Submit

Once you have corrected any errors Click Submit you will then see the Successful Submission message.

Remember all submissions are unconfirmed until they have been validated and returned as Approved by the DOE.

Once the DOE has approved your AC5 submission you will receive an email notification from the Registry.

The DOE may reject or partially reject your AC5 submission. Details regarding rejections can be found in Ministry Invoices and Statements

Clicking on Query AC5 on the Registry menu opens up the Query Custom Processing Fees Paid – AC5 screen.

Click Go

The AC5 query screen displays confirmed data only

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Request Allowable Cost Reports

Clicking on Submit Report Request on the Registry menu opens up the Submit Report Request page

Using the dropdown list you can select the Allowable Cost Report you want.

AC2 – FCC Capital and Operating Costs Report 

For production years 2009 and onward has new selection options including:

Capital Summary report

Operating Summary report

Detail report (capital & operating costs)

The report is available in:

pdf, csv & xml formats

AC3 – Allowable Costs Reallocation Report

For production years 2009 and onward there are new selection options including:

Capital Cost report

Operating Cost report 

The report is available in

pdf, csv & xml formats

AC4 – Operating Cost Claim Report 

For Production Years 2009 and Onward, this report is not available.

AC5 – FCC Custom Processing Fees Paid Report

This report request has not changed.

The report is available in

pdf, csv & xml formats

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Sunday Openings during Allowable Cost Season

– Feb 14, 6:00 am to 5:30 pm (Service Desk on call)

– March 7, 6:00 am to 5:30 pm (Service Desk closed)

– March 14, 6:00 am to 5:30 pm (Service Desk closed)

– March 28, 6:00 am to 5:30 pm (Service Desk closed)

– April 4, 6:00 am to 5:30 pm (Service Desk closed)

– April 18, 6:00 am to 5:30 pm (Service Desk closed)

– April 25, 6:00 am to 5:30 pm (Service Desk closed)

– May 9, 6:00 am to 5:30 pm (Service Desk closed)

– May 16, 6:00 am to 5:30 pm (Service Desk closed)

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Training Updated

1. Training Modules• 8.3 Manage AC2: Capital and Operating Costs

• 8.4 Manage AC3: Allowable Costs Reallocations

• 8.6 Manage AC5: Custom Processing Fees Paid

• 8.7 Request Allowable Costs Reports

• 8.8 Query Allowable Costs and Facility Cost Centre

2. Online Help Pages related to the above processes.

3. Tip Posted Entitled “Gas Cost Allowance Business Rules and Submission Process for 2009 Production Year and Onward”

4. Allowable Costs CSV Spreadsheet Upload Templates have been updated with the 2009 data requirements.

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QUESTIONS

All Questions and Responses from today’s presentationwill be posted to the Registry Website under Presentations