OGOR Reporting Update on Edits and Common Reporting Problems

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1 U.S. Department of the Interior Office of Natural Resources Revenue (ONRR) OGOR Reporting Update on Edits and Common Reporting Problems Presented by: Kimbra Davis, Program Manager for Production Reporting and Verification Petroleum Accountants Society of Oklahoma February 7, 2013 Industry Compliance Accurate Revenues and Data Professionalism & Integrity

2 Production, Reporting & Verification (PRV) Production Reporting & Verification (PRV) Kimbra Davis, Program Manager (303) Production Reporting Louise Williams, Manager (303) Production Inspection & Verification Robert Kronebusch, Acting Manager (303) Error Correction/Missing Team 1 Jane Heschele, Team Supervisor (303) jane.heschele@onrr.gov Error Correction/Missing Team 2 Luke Lundmark, Team Supervisor (303) luke.lundmark@onrr.gov LVS/GVS & PASR Vicky Stafford, Team Supervisor (303) vicky.stafford@onrr.gov Measurement Inspection/Program Support TBD 2 Industry Compliance Accurate Revenues and Data Professionalism & Integrity

3 PRV Responsibilities Manage the Oil and Gas Operations Report (OGOR) Receive, process, and perform error correction for production reports Resolve missing exceptions for Wells, OGORs, and PASRs Resolve all Well data, OGOR, and PASR exceptions Resolve volume exceptions generated by the LVS and GVS Provide timely production data to BLM, BSEE, States/Tribes, Public, etc. Issue Orders to Report and Notices of Non-Compliance Support Measurement Inspection activities Production data received from approximately 2,000 oil and gas operators 6.1 million lines of production data reported in FY ,000 errors corrected in FY % error rate Industry Compliance Accurate Revenues and Data Professionalism & Integrity 3

4 Oil and Gas Operations Report The OGOR is used to report the summary of ALL operations conducted on a lease/agreement during a specific production month. OGOR-A: API well number, well status, and monthly production and injection volumes OGOR-B: Disposition code and volume disposed OGOR-C: Oil inventory balance (production and sales) 4

5 OGOR - Relationship Between Parts OGOR-A Production WELL OIL GAS WATER TOTAL Volumes reported as produced into a facility prior to sale Disposition Code 10 on OGOR-B equal production volumes on OGOR-C PRODUCT OIL TOTAL OGOR-B Disposition OIL GAS WATER SALES 200 PROD. INTO FACILITY 50 ON-LEASE 25 ON-LEASE 10 TOTAL BEGINNING INVENTORY OGOR-C Inventory PRODUCTION SALES ENDING INVENTORY Volumes reported as produced on OGOR-A equal volumes reported as disposed (sold) on OGOR-B 5

6 Production Reporting Process Overview Operations Reports From Operators Error Correction Financial Accounting System Royalty lines Financial Accounting System Database Reference Data Reports To Operators via the internet Confirmation & Missing Reports To Operators via the Internet Monthly Production Reports To States / Tribes / BIA BSEE Regional Offices Onshore OGOR Lease & Well Information BLM Service Center Audit and Compliance Management Management Reports BLM INSPECTION OFFICES 6

7 Industry Question #1 Despite reporting correctly, we get a lot of rejects because the ONRR and BLM databases are not in sync. What is being done to stop these false rejects from occurring? ONRR is working with BLM to analyze the well reference data transmission processes and identify root causes of errors in order to find a solution. ONRR is dependent upon BLM updating our data base with the updated well/lease/agreement/production month information. 7

8 High Level Onshore Well & OGOR Data Flow (with Primary & Secondary Metric Points) 6 j 6

9 Industry Question #2 ONRR's error/reject report is generating false errors on beginning/ending inventory balances. Will this be fixed prior to dropping in the upfront edit on beginning/ending inventory? ONRR has experienced a system problem with the new inventory edits (11030 & 11050) when a modified report is submitted. A Fatal error is incorrectly generated when a Modify OGOR for the prior month has been accepted with no OGOR-C and then the next month's Original document is validated with an OGOR-C. We are working to resolve the issue and have turned the edits to a Warning error until the problem is corrected. 9

10 Industry Question #3 Can industry get read-only access to ONRR completion data and BLM completion data? This access would enable us to do some research without assistance from agency personnel. Some completion data (e.g., API well no., producing interval, operator well number, well name, well formation, well location) is available on the Well Confirmation Report in ONRR s Data Warehouse portal. BLM owns the Well Completion or Recompletion Report and Log (Form ) and can address AFMSS access to this data. 10

11 Industry Question #4 How often is the Well Confirmation Report updated and can we get Reporter Training on how to understand the information on the report? The information is updated once a month in our Data Warehouse portal. We provide examples of the Well Confirmation Report (see next slide) and explain the data in each of our Reporter Training sessions held three times a year. The information regarding the Reporter Training sessions is on our webpage at 11

12 Well Confirmation Report The information is updated once a month in our Data Warehouse portal. We provide examples of the Well Confirmation Report (see next slide) and explain the data in each of our Reporter Training sessions held three times a year. The information regarding the Reporter Training sessions is on our webpage at

13 Production Reporter Training Classes April 16, 2013 May 14, 2013 June 10, 2013 Oklahoma City Houston, TX Denver, CO Note: Dates are tentative pending confirmation of hotel and meeting room accommodations. 13

14 Industry Question #5 Could ONRR expand the hours of access to the ONRR portal as it is currently closed evenings and weekends? ONRR can not expand after hours access at this time because of processing time limitations. Since all reporting transactions are processed in real time, we do our full batch jobs (Accounts Payables/Receivables, General Ledger, Billing/Exception Processing, data from BLM/BSEE etc.,) at night after 6 pm and before 6 am so that the daytime processing will not interfere with the nightly batch processing. ONRR will explore this issue after scheduled software and hardware upgrades are completed which should give us faster processing time. 14

15 Industry Question #6 Do you anticipate any additional OGOR reporting requirements or changes in 2013/2014 for either onshore or offshore? ONRR is changing how you report gas sold under an arm slength percentage-of-proceeds contract (APOP). Operators with gas production that is transferred to a separation facility or plant facility for processing must report Disposition Code 11 Transferred to Facility, on the OGOR-B. Also required to report the corresponding gas plant identification number on the OGOR-B. A Dear Reporter letter is forthcoming. 15

16 Industry Question #6 Web Address for this page: 16

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